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Neogen (Neogen) ROE % : -0.26% (As of Feb. 2024)


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What is Neogen ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Neogen's annualized net income for the quarter that ended in Feb. 2024 was $-8.1 Mil. Neogen's average Total Stockholders Equity over the quarter that ended in Feb. 2024 was $3,146.9 Mil. Therefore, Neogen's annualized ROE % for the quarter that ended in Feb. 2024 was -0.26%.

The historical rank and industry rank for Neogen's ROE % or its related term are showing as below:

NEOG' s ROE % Range Over the Past 10 Years
Min: -1.14   Med: 9.83   Max: 12.24
Current: 0.05

During the past 13 years, Neogen's highest ROE % was 12.24%. The lowest was -1.14%. And the median was 9.83%.

NEOG's ROE % is ranked better than
55.05% of 218 companies
in the Medical Diagnostics & Research industry
Industry Median: -6.13 vs NEOG: 0.05

Neogen ROE % Historical Data

The historical data trend for Neogen's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Neogen ROE % Chart

Neogen Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.05 8.73 7.78 5.59 -1.14

Neogen Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.05 0.71 0.19 -0.44 -0.26

Competitive Comparison of Neogen's ROE %

For the Diagnostics & Research subindustry, Neogen's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Neogen's ROE % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Neogen's ROE % distribution charts can be found below:

* The bar in red indicates where Neogen's ROE % falls into.



Neogen ROE % Calculation

Neogen's annualized ROE % for the fiscal year that ended in May. 2023 is calculated as

ROE %=Net Income (A: May. 2023 )/( (Total Stockholders Equity (A: May. 2022 )+Total Stockholders Equity (A: May. 2023 ))/ count )
=-22.87/( (887.374+3134.217)/ 2 )
=-22.87/2010.7955
=-1.14 %

Neogen's annualized ROE % for the quarter that ended in Feb. 2024 is calculated as

ROE %=Net Income (Q: Feb. 2024 )/( (Total Stockholders Equity (Q: Nov. 2023 )+Total Stockholders Equity (Q: Feb. 2024 ))/ count )
=-8.088/( (3147.567+3146.174)/ 2 )
=-8.088/3146.8705
=-0.26 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Feb. 2024) net income data. ROE % is displayed in the 30-year financial page.


Neogen  (NAS:NEOG) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Feb. 2024 )
=Net Income/Total Stockholders Equity
=-8.088/3146.8705
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-8.088 / 915.248)*(915.248 / 4592.4535)*(4592.4535 / 3146.8705)
=Net Margin %*Asset Turnover*Equity Multiplier
=-0.88 %*0.1993*1.4594
=ROA %*Equity Multiplier
=-0.18 %*1.4594
=-0.26 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Feb. 2024 )
=Net Income/Total Stockholders Equity
=-8.088/3146.8705
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-8.088 / -23.288) * (-23.288 / 48.092) * (48.092 / 915.248) * (915.248 / 4592.4535) * (4592.4535 / 3146.8705)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.3473 * -0.4842 * 5.25 % * 0.1993 * 1.4594
=-0.26 %

Note: The net income data used here is four times the quarterly (Feb. 2024) net income data. The Revenue data used here is four times the quarterly (Feb. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Neogen ROE % Related Terms

Thank you for viewing the detailed overview of Neogen's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Neogen (Neogen) Business Description

Traded in Other Exchanges
Address
620 Lesher Place, Lansing, MI, USA, 48912
Neogen Corporation, headquartered in Lansing, Michigan, develops, manufactures, and markets various products for food and animal safety. In food safety (70% of post-merger sales), Neogen performs diagnostics to detect unintended substances in food and animal feed, such as pathogens, allergens, and drug residues, for food and feed processing companies. In animal safety (20% of post-merger sales), Neogen sells veterinary instruments, pharmaceuticals, disinfectants, and genomics tests for animals, including cattle, horses, and canines. Sales in the United States account for 60% of total revenue, while international markets, including Canada, Europe, Asia, and Latin America, account for the remaining 40%.
Executives
William T Boehm director
Douglas Edward Jones officer: Vice President, CCO 620 LESHER PLACE, LANSING MI 48912
Jason Warren Lilly officer: Vice President 620 LESHER PLACE, LANSING MI 48912
James P Tobin director 620 LESHER PLACE, LANSING MI 48895
David H. Naemura officer: VP & CFO C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Amy M Rocklin officer: Chief Legal & Reg. Officer 620 LESHER PLACE, LANSING MI 48912
Steven J. Quinlan officer: VP & CFO 620 LESHER PLACE, LANSING MI 48912
Jeffrey D Capello director C/O NEOGEN CORP., 620 LESHER PLACE, LANSING MI 48912
Aashima Gupta director C/O NEOGEN CORPORATION, 620 LESHER PLACE, LANSING MI 48912
John Edward Adent officer: Chief Executive Officer 822 7TH STREET, SUITE 740, GREELEY CO 80631
Darci L Vetter director 620 LESHER PLACE, LANSING MI 48912
Ronald D Green director 620 LESHER PLACE, LANSING MI 48912
James C Borel director 1007 MARKET STREET, WILMINGTON DE 19898
Terri A Morrical officer: General Manager
G Bruce Papesh director 726 APPLEGATE LANE, EAST LANSING MI 48823