Neogen Corporation (NEOG)
Return on total capital
| 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 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 67,879 |
| Long-term debt | US$ in thousands | 889,129 | 887,653 | 886,915 | 886,177 | 885,439 | 884,701 | 923,962 | — | 0 | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 660,306 |
| Return on total capital | 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% | 10.28% |
August 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $25,716K ÷ ($889,129K + $3,135,190K)
= 0.64%
Neogen Corporation has shown varying levels of return on total capital over the past few reporting periods. The return on total capital ratio measures the efficiency with which a company uses its capital to generate profits.
In the latest period ending August 31, 2024, the return on total capital was 0.64%, which is lower compared to the previous reporting period. This indicates that Neogen's profitability relative to its total capital employed has decreased.
Looking back over the past few quarters, the trend has been fluctuating, with some periods showing higher returns than others. Notably, in the quarter ending February 28, 2022, Neogen achieved a return on total capital of 10.28%, which was the highest among the reported periods.
Overall, Neogen's return on total capital has shown some volatility, with fluctuations in profitability relative to the total capital employed. Investors and stakeholders may want to closely monitor this ratio to assess the company's efficiency in generating profits from its invested capital.
Peer comparison
Aug 31, 2024