Neogen Corporation (NEOG)
Days of inventory on hand (DOH)
| Aug 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.56 | 5.11 | 5.70 | 6.65 | 6.21 | 5.03 | 4.57 | 3.74 | 3.79 | 3.94 | 3.97 | 3.95 | 3.85 | 3.72 | 3.85 | 3.59 | 3.63 | 3.89 | 3.98 | 3.92 | |
| DOH | days | 80.09 | 71.36 | 64.00 | 54.87 | 58.81 | 72.60 | 79.80 | 97.60 | 96.34 | 92.75 | 91.83 | 92.34 | 94.75 | 98.02 | 94.88 | 101.76 | 100.59 | 93.93 | 91.79 | 93.16 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.56
= 80.09
Neogen Corporation's days of inventory on hand (DOH) has fluctuated over the past few years, indicating varying levels of inventory management efficiency. The trend shows that the DOH has generally been on the higher side, with peaks around 97 to 101 days in the last couple of years, suggesting that Neogen may have excess inventory levels relative to its sales volume.
However, there have been some improvements seen in more recent periods, with the DOH decreasing to around 54 to 80 days, indicating potentially better inventory management practices. A lower DOH can be a positive sign as it implies that inventory is being sold more quickly, reducing the risk of obsolete or excess stock.
Overall, Neogen Corporation should continue to focus on optimizing its inventory management processes to ensure a healthy balance between maintaining sufficient inventory levels to meet demand and preventing overstock situations that tie up capital and reduce profitability.
Peer comparison
Aug 31, 2024