Neogen Corporation (NEOG)

Fixed asset turnover

		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	May 31, 2019
Revenue (ttm)	US$ in thousands	1,817,638	1,800,899	1,778,001	1,592,370	1,401,365	1,227,465	1,062,406	1,054,318	901,557	761,778	730,744	692,784	674,433	757,462	743,068	727,266	727,954	723,616	722,206	718,610
Property, plant and equipment	US$ in thousands	272,282	244,300	221,090	198,749	164,888	148,170	121,021	110,584	104,699	100,863	99,515	100,453	97,981	83,774	80,593	78,671	78,394	77,150	75,154	74,847
Fixed asset turnover		6.68	7.37	8.04	8.01	8.50	8.28	8.78	9.53	8.61	7.55	7.34	6.90	6.88	9.04	9.22	9.24	9.29	9.38	9.61	9.60

February 29, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,817,638K ÷ $272,282K
= 6.68

The fixed asset turnover for Neogen Corporation has been fluctuating over the past 20 quarters. The company's ability to generate sales from its fixed assets has ranged from a low of 6.68 to a high of 9.61 during this period. The trend shows some variability, with periods of higher fixed asset turnover interspersed with slightly lower ratios.

Overall, the fixed asset turnover ratio has remained relatively healthy, indicating that Neogen Corporation is utilizing its fixed assets efficiently to generate revenue. A higher ratio suggests that the company is effectively using its fixed assets to drive sales, while a lower ratio may indicate underutilization or inefficiency in asset management.

It is important for investors and stakeholders to continue monitoring the fixed asset turnover ratio to assess the company's ability to optimize its asset base and generate revenue effectively.