Neogen Corporation (NEOG)

Days of sales outstanding (DSO)

May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021
Receivables turnover 5.83 5.34 5.37 5.29 5.10
DSO days 62.58 68.32 68.01 69.01 71.54

May 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.83
= 62.58

The Days of Sales Outstanding (DSO) for Neogen Corporation over the period from May 31, 2021, to May 31, 2025, demonstrates a generally stable trend with gradual fluctuations. Specifically, the DSO decreased from approximately 71.54 days in 2021 to 69.01 days in 2022, indicating a slight improvement in the company's collection efficiency or credit policy during that year. The metric further declined marginally to 68.01 days in 2023, suggesting continued, albeit modest, enhancements in receivables management.

In the subsequent period, the DSO experienced a small increase to 68.32 days in 2024, which may reflect minor changes in customer payment patterns or credit terms. However, a notable decrease occurred in 2025, with the DSO falling to 62.58 days. This reduction signifies a meaningful improvement in the company's receivables turn-over, implying that customers are settling their accounts more promptly compared to previous years.

Overall, the trajectory of Neogen Corporation's DSO indicates a trend toward shorter receivable collection periods, which can be interpreted as a positive sign of more effective receivables management and potentially improved cash flow. The sustained downward movement, especially the notable decrease in 2025, suggests strategic or operational enhancements that have strengthened the company's liquidity position.