Neogen Corporation (NEOG)
Days of inventory on hand (DOH)
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.25 | 3.79 | 3.85 | 3.63 | 3.98 | |
| DOH | days | 58.39 | 96.34 | 94.75 | 100.59 | 91.67 |
May 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.25
= 58.39
The days of inventory on hand (DOH) measure for Neogen Corp. has shown fluctuations over the past five years. The trend indicates a decrease in the DOH from 157.12 days in 2022 to 117.27 days in 2023, which signifies an improvement in the management of inventory levels. This reduction suggests that Neogen Corp. has been more efficient in managing its inventory and turning it into sales during the most recent fiscal year. However, it is important to note that the DOH figure was higher in 2020 and 2021 compared to 2019, indicating a potential issue with inventory management during those years. Further analysis of the company's inventory turnover and sales trends may provide additional insights into the efficiency of its inventory management practices.
Peer comparison
May 31, 2023