Neogen Corporation (NEOG)

Days of inventory on hand (DOH)

Nov 30, 2024 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
Inventory turnover 6.92 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
DOH days 52.77 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

November 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.92
= 52.77

Neogen Corporation's days of inventory on hand (DOH) has fluctuated over the reported period. The DOH started at 91.79 days as of November 30, 2019, increased to 101.76 days by August 31, 2020, and then decreased to 79.80 days by November 30, 2022. Thereafter, it varied between lower and higher levels, reaching 52.77 days on November 30, 2024.

A lower DOH indicates that Neogen is managing its inventory efficiently, as it is selling its inventory faster. Conversely, a higher DOH may suggest either overstocking or a slowdown in sales.

The downward trend in the latter part of the data period could signal improved inventory management, avoiding excess or obsolete inventory. However, careful monitoring of this ratio is necessary to ensure optimal inventory levels are maintained to support sales without tying up excess capital in inventory.