Neogen Corporation (NEOG)

Inventory turnover

		Nov 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,371,451	905,083	932,892	915,465	935,907	830,479	723,301	622,394	482,567	463,396	446,232	425,625	403,608	387,925	369,635	355,939	349,990	344,910	346,791	343,600
Inventory	US$ in thousands	198,267	198,596	182,390	160,529	140,692	133,812	143,863	136,069	129,039	122,313	113,395	107,086	102,109	100,701	99,267	92,529	97,573	95,053	89,244	86,406
Inventory turnover		6.92	4.56	5.11	5.70	6.65	6.21	5.03	4.57	3.74	3.79	3.94	3.97	3.95	3.85	3.72	3.85	3.59	3.63	3.89	3.98

November 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,371,451K ÷ $198,267K
= 6.92

Neogen Corporation's inventory turnover ratio has shown fluctuations over the period from November 30, 2019, to November 30, 2024. The ratio started at 3.98 and experienced some decreases and increases before reaching a peak of 6.92 on November 30, 2024.

A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be seen as a positive indicator of efficiency. Conversely, a lower ratio may suggest that the company is holding onto inventory for longer periods, potentially tying up capital and increasing storage costs.

Overall, Neogen Corporation's inventory turnover ratio trended upwards from November 30, 2019, to November 30, 2024, which could signify improved inventory management and potentially effective sales strategies. It is important to monitor this ratio continuously to ensure optimal inventory management practices and efficient use of resources.