Neogen Corporation (NEOG)

Days of inventory on hand (DOH)

May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Inventory turnover 2.43 3.11 2.32 2.52 2.33
DOH days 150.07 117.27 157.12 145.05 156.36

May 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.43
= 150.07

The Days of Inventory on Hand (DOH) for Neogen Corporation has shown fluctuations over the past five years. Starting at 156.36 days as of May 31, 2020, the DOH decreased to 145.05 days by May 31, 2021. Subsequently, there was a slight increase to 157.12 days by May 31, 2022, followed by a notable decrease to 117.27 days by May 31, 2023. The DOH then increased again to 150.07 days as of May 31, 2024.

These fluctuations in the DOH can indicate changes in the company's inventory management efficiency. A decreasing DOH suggests that Neogen Corporation might be managing its inventory more effectively, potentially reducing excess inventory levels or streamlining its supply chain. Conversely, an increasing DOH could signal potential challenges in inventory management, such as overstocking or slower inventory turnover.

Overall, it is important for Neogen Corporation to closely monitor its DOH and continue to assess and optimize its inventory management practices to ensure efficient operations and minimize holding costs.