Nd-Fe-B is a promising material system for the preparation of thin films with good hard magnetic properties. One problem of this material class is the sensitivity against oxidation; resulting in a degradation of the magnetic properties. Using XPS depth profiling in combination with peak-shape, analysis it is shown that already after several hours oxygen can diffuse deep into the thin laser-deposited films and that Nd is mainly responsible for the oxidation. Local element analysis with AES revealed boron inhomogeneities from droplet formation during laser deposition. These problems can be solved by using a capping Cr layer and an FeB target for thin film preparation, respectively. (c) 2005 Elsevier B.V. All rights reserved.