Neogen Corporation (NEOG)

Inventory turnover

		May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Cost of revenue	US$ in thousands	836,479	463,396	387,925	344,910	342,391
Inventory	US$ in thousands	133,812	122,313	100,701	95,053	85,992
Inventory turnover		6.25	3.79	3.85	3.63	3.98

May 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $836,479K ÷ $133,812K
= 6.25

Neogen Corp.'s inventory turnover has shown a positive trend over the past five years. The inventory turnover ratio has increased from 2.58 in 2019 to 3.11 in 2023, indicating that the company is managing its inventory more efficiently. This suggests that Neogen Corp. has been able to sell and replace its inventory at a faster rate over the years, which can be a sign of effective inventory management and potentially lower holding costs. The improvement in inventory turnover may also indicate better demand forecasting and inventory control, leading to optimized working capital and potential cost savings. Overall, the upward trend in inventory turnover reflects positively on Neogen Corp.'s operational efficiency and management of its inventory resources.