Neogen Corporation (NEOG)

Short-term

Turnover ratios

Neogen Corporation's inventory turnover has shown fluctuations over the past five years, with a slight increase from 2.33 in May 2020 to 2.52 in May 2021, followed by a decrease to 2.32 in May 2022. However, there was a significant improvement in inventory turnover to 3.11 in May 2023 before dropping back to 2.43 in May 2024.

The receivables turnover ratio for Neogen Corporation was not provided for any of the years, indicating that the company's credit sales policy or the collection efficiency of its accounts receivable may not be easily discernible from the given data.

Similarly, the payables turnover ratio was not available for any of the years, suggesting that insights into the company's payment practices to its suppliers are not evident from the provided information.

Neogen Corporation's working capital turnover has been on an upward trend, starting at 0.86 in May 2020 and consistently increasing to 0.87 in May 2021, 0.96 in May 2022, 1.87 in May 2023, and reaching 2.13 in May 2024. This indicates that the company is generating more revenue relative to its working capital over the years, which can be a positive indicator of operational efficiency and financial health.

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Average number of days

Neogen Corporation's Days of Inventory on Hand (DOH) have shown fluctuations over the years, with a peak of 157.12 days on May 31, 2022, and a low of 117.27 days on May 31, 2023. This indicates that the company may have experienced challenges in managing its inventory efficiently, potentially leading to excess inventory levels or slow inventory turnover during certain periods.

On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables information is not available, suggesting a lack of data to analyze the company's accounts receivable collection period and accounts payable period, respectively. This limitation hinders a comprehensive assessment of Neogen Corporation's overall working capital management.

In summary, based on the provided data, Neogen Corporation's inventory management efficiency has shown variability over the past few years, highlighting the importance of closely monitoring and optimizing inventory levels to enhance operational performance and financial health.

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Long-term

Neogen Corporation's fixed asset turnover ratio has shown a slight decline from 5.32 in May 31, 2020, to 4.66 in May 31, 2021, before rebounding to 4.77 in May 31, 2022. However, there was a notable drop in the ratio to 4.14 in May 31, 2023. It is important to note that no data is available for May 31, 2024. This ratio reflects how efficiently Neogen is utilizing its fixed assets to generate sales.

Moreover, the total asset turnover ratio for Neogen Corporation has been relatively stable over the years, with values of 0.52 in May 31, 2020, and 0.51 in May 31, 2021. The ratio then slightly increased to 0.53 in May 31, 2022, before experiencing a significant decline to 0.18 in May 31, 2023. The ratio improved slightly to 0.20 in May 31, 2024. This ratio provides insights into the company's overall efficiency in generating sales from its total assets.

Overall, the fixed asset turnover ratio indicates the efficiency of Neogen in using its fixed assets, while the total asset turnover ratio shows the overall effectiveness of the company in utilizing its total assets to generate revenue. The trends in these ratios can offer valuable insights into the operational performance and asset utilization efficiency of Neogen Corporation over the years.