Neogen Corporation (NEOG)

Days of sales outstanding (DSO)

May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 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
Receivables turnover 5.83 5.66 5.57 5.44 5.34 5.35 6.10 6.68 5.37 4.92 4.42 5.70 5.29 5.53 5.44 5.58 5.10 5.16 5.42 5.48
DSO days 62.58 64.49 65.54 67.08 68.32 68.19 59.79 54.67 68.01 74.14 82.59 63.98 69.01 65.96 67.13 65.36 71.54 70.75 67.34 66.55

May 31, 2025 calculation

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

The analysis of Neogen Corporation’s Days of Sales Outstanding (DSO) over the specified periods reveals notable fluctuations, reflecting variations in the company's accounts receivable collection efficiency. The DSO values ranged from a low of approximately 54.67 days on August 31, 2023, to a high of approximately 82.59 days on November 30, 2022.

Initially, from August 31, 2020, through May 31, 2021, the DSO exhibited a gradual upward trend, peaking around March 2021 at 70.75 days, suggesting a slight elongation in the collection period early in this timeframe. Subsequent periods demonstrated variability with some short-term improvements; for example, the DSO decreased to approximately 63.98 days as of August 31, 2022, indicating more prompt collections.

However, a significant increase occurred by November 30, 2022, where the DSO rose sharply to approximately 82.59 days, signifying potential challenges in receivable collections or changes in credit policies. This elevated level persisted into early 2023, with the DSO registering around 74.14 days in February 2023, before gradually declining.

From August 2023 onward, the DSO showed a consistent downward trend, reaching its lowest point of about 54.67 days as of August 31, 2023. This indicates an improvement in receivables management and faster collection cycles. Nonetheless, it experienced a slight increase afterward, returning to approximately 59.79 days in November 2023 and stabilizing around 62.58 days by May 2025.

Overall, the DSO trend demonstrates periods of both deterioration and improvement in collection efficiency, with notable peaks in late 2022 and a subsequent normalization in 2023. The recent reduction in DSO levels suggests that the company has implemented effective measures to enhance receivables collection, aligning closer to industry norms and improving liquidity management.