Neogen Corporation (NEOG)

Return on total capital

		Nov 30, 2024	Aug 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-444,032	25,716	40,963	43,128	28,952	22,750	23,273	22,810	42,935	58,618	60,846	70,243	77,019	74,169	73,858	71,127	70,154	67,523	66,309	67,905
Long-term debt	US$ in thousands	889,867	889,129	887,653	886,915	886,177	885,439	884,701	923,962	—	0	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,669,070	3,135,190	3,146,170	3,147,570	3,146,180	3,134,220	3,125,560	3,106,260	883,798	887,374	875,544	865,476	855,363	840,377	807,683	777,395	751,546	725,177	711,871	690,917
Return on total capital		-12.48%	0.64%	1.02%	1.07%	0.72%	0.57%	0.58%	0.57%	4.86%	6.61%	6.95%	8.12%	9.00%	8.83%	9.14%	9.15%	9.33%	9.31%	9.31%	9.83%

November 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-444,032K ÷ ($889,867K + $2,669,070K)
= -12.48%

Neogen Corporation's return on total capital has shown a gradual decline over the analyzed period. It started at 9.83% in November 2019 and hovered around the range of 9% for the next few quarters, indicating a relatively stable performance. However, there was a noticeable dip in the performance to 6.61% in May 2022 and a further decline to 0.57% by May 2023. This downward trend continued, reaching negative territory with a return of -12.48% in November 2024. Overall, this suggests that Neogen Corporation's ability to generate profits from its total capital has been weakening over the period, indicating potential challenges in effectively utilizing its resources to generate returns for its investors.