Neogen Corporation (NEOG)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 9.13 | |
| DSO | days | 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 | 39.98 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.62
= 34.37
Neogen Corporation's Days Sales Outstanding (DSO) is a measure of how quickly the company collects its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, while a higher DSO suggests that the collection process may be taking longer.
Analyzing the historical trend of Neogen Corporation's DSO over the past few years, we can see fluctuations in the DSO figures. From Nov 30, 2019, to Aug 31, 2024, the DSO has varied between 28.26 days to 48.38 days, with most values falling between 30 to 40 days.
Generally, a stable or decreasing trend in DSO is considered positive as it indicates efficient management of accounts receivable and timely collection efforts. However, Neogen Corporation experienced fluctuations in its DSO during this period, which may indicate changes in its credit policies, customer payment behaviors, or other factors affecting the collection process.
It is essential for Neogen Corporation to closely monitor and manage its DSO to ensure efficient cash flow management and maintain healthy liquidity levels. By analyzing the factors contributing to fluctuations in the DSO and implementing strategies to streamline the collection process, Neogen Corporation can enhance its financial performance and strengthen its overall financial stability.
Peer comparison
Aug 31, 2024