Neogen Corporation (NEOG)

Fixed asset turnover

		May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Revenue	US$ in thousands	1,616,090	1,054,320	936,918	836,340	828,372
Property, plant and equipment	US$ in thousands	198,749	110,584	100,453	78,671	74,847
Fixed asset turnover		8.13	9.53	9.33	10.63	11.07

May 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,616,090K ÷ $198,749K
= 8.13

Neogen Corp.'s fixed asset turnover has shown a declining trend over the past five years, decreasing from 5.53 in 2019 to 4.14 in 2023. This indicates that the company is generating less revenue per dollar invested in fixed assets. A lower fixed asset turnover can be a cause for concern as it may suggest inefficiencies in asset utilization or declining sales relative to the investment in fixed assets. It is important for the company to closely monitor and assess its asset management strategies to improve the efficiency of its fixed asset turnover.