Neogen Corporation (NEOG)

Days of sales outstanding (DSO)

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
Receivables turnover 10.92 10.62 10.47 11.97 12.92 10.39 9.57 8.60 11.41 10.58 9.70 8.24 8.37 7.54 7.73 9.48 9.57 8.59 9.02 8.48
DSO days 33.41 34.37 34.86 30.50 28.26 35.13 38.13 42.44 31.99 34.51 37.64 44.32 43.60 48.38 47.21 38.52 38.16 42.50 40.46 43.07

November 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.92
= 33.41

Neogen Corporation's Days Sales Outstanding (DSO) has shown fluctuations over the period from November 2019 to November 2024. Initially, the DSO was around 43 days, which then decreased to around 31 days by August 2022. This decrease may indicate an improvement in the company's accounts receivable management efficiency.

However, from August 2022 to November 2024, the DSO increased, reaching around 33-35 days. This upturn in DSO could suggest a potential slowing down in the collection of receivables, which may lead to cash flow challenges if not managed effectively.

Overall, Neogen Corporation's DSO trend indicates some variability in its accounts receivable management, and it would be prudent for the company to closely monitor and strategize to maintain a healthy balance between sales and collections to ensure optimal cash flow and financial stability.