Neogen Corporation (NEOG)
Fixed asset turnover
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 905,996 | 913,828 | 912,199 | 924,222 | 929,238 | 918,681 | 919,085 | 822,447 | 720,730 | 630,719 | 531,203 | 527,159 | 514,491 | 502,956 | 487,439 | 468,459 | 450,108 | 433,268 | 426,071 | 418,170 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | 235,595 | 198,749 | 164,888 | 148,170 | 121,021 | 110,584 | 104,699 | 100,863 | 99,515 | 100,453 | 97,981 | 83,774 | 82,349 | 78,671 |
| Fixed asset turnover | — | — | — | — | — | — | 3.90 | 4.14 | 4.37 | 4.26 | 4.39 | 4.77 | 4.91 | 4.99 | 4.90 | 4.66 | 4.59 | 5.17 | 5.17 | 5.32 |
February 28, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $905,996K ÷ $—K
= —
Neogen Corporation's fixed asset turnover ratio has shown a gradual decline from 5.32 in May 2020 to 3.90 by August 31, 2023. This ratio measures the efficiency of the company in generating sales from its fixed assets. A higher turnover ratio indicates that the company is utilizing its fixed assets efficiently to generate revenue.
The decreasing trend in Neogen Corporation's fixed asset turnover ratio suggests that the company may be experiencing challenges in maximizing the productivity of its fixed assets. This could be due to factors such as inefficient asset utilization, technological obsolescence, or changes in the business environment impacting asset efficiency.
It is essential for Neogen Corporation to analyze the reasons behind the declining fixed asset turnover and take corrective actions to improve efficiency and optimize the utilization of fixed assets. This may involve reassessing asset management strategies, investing in technological upgrades, or evaluating the need for asset replacements to enhance operational effectiveness and profitability in the long run.
Peer comparison
Feb 28, 2025