Neogen Corporation (NEOG)
Fixed asset turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 894,661 | 924,222 | 822,447 | 527,159 | 468,459 |
| Property, plant and equipment | US$ in thousands | — | — | 198,749 | 110,584 | 100,453 |
| Fixed asset turnover | — | — | 4.14 | 4.77 | 4.66 |
May 31, 2025 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $894,661K ÷ $—K
= —
The fixed asset turnover ratio for Neogen Corporation has demonstrated variability over the analyzed period. As of May 31, 2021, the ratio stood at 4.66, indicating that the company generated approximately 4.66 dollars of revenue for each dollar invested in fixed assets. This ratio increased slightly to 4.77 by May 31, 2022, suggesting a marginal improvement in asset utilization efficiency or in revenue generation relative to fixed asset investments.
However, by May 31, 2023, the ratio declined notably to 4.14. This decrease suggests that the company's efficiency in utilizing its fixed assets to generate sales diminished during that fiscal year. The reduction could be attributable to various factors, including increased fixed asset base without proportionate revenue growth, operational inefficiencies, or shifts in the product or service mix.
Data beyond May 31, 2023, is not available, as indicated by the absence of ratios for subsequent periods. Overall, the trend reflects a peak in fixed asset utilization efficiency around 2022, followed by a decline in 2023. The decrease warrants further examination into the company's asset management, investments, and operational strategies to determine underlying causes or potential areas for improvement.
Peer comparison
May 31, 2025