Neogen Corporation (NEOG)
Number of days of payables
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 10.91 | 13.39 | 16.23 | 13.45 | 17.96 | |
| Number of days of payables | days | 33.45 | 27.26 | 22.49 | 27.14 | 20.32 |
May 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.91
= 33.45
The number of days of payables for Neogen Corp has shown an upward trend over the past five years, increasing from 31.30 days in 2019 to 67.19 days in 2023. This indicates that the company is taking longer to pay its suppliers and creditors. A higher number of days of payables may suggest that Neogen Corp is using its suppliers' financing terms to its advantage, potentially conserving its own cash flow for other purposes. However, a significant increase in this ratio over a short period may also raise concerns about the company's liquidity and its ability to meet its financial obligations in a timely manner. Therefore, it would be prudent for stakeholders to monitor Neogen Corp's payment practices and overall financial health closely.
Peer comparison
May 31, 2023