Neogen Corporation (NEOG)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,780,298	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
Property, plant and equipment	US$ in thousands	300,971	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
Fixed asset turnover		5.92	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

August 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,780,298K ÷ $300,971K
= 5.92

Neogen Corporation's fixed asset turnover has been consistently high over the past 20 periods, ranging from 5.92 to 9.61. This indicates that the company is effectively utilizing its fixed assets to generate sales revenue. The increasing trend in fixed asset turnover from Aug 31, 2019, to Aug 31, 2024, suggests improvements in operational efficiency and asset utilization. A higher fixed asset turnover ratio typically implies better productivity and efficiency in generating revenue from fixed assets. Neogen Corporation's ability to effectively generate sales from its fixed assets bodes well for its overall operational performance and financial health.