Neogen Corporation (NEOG)
Number of days of payables
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.95 | 5.54 | 5.43 | 8.21 | 10.60 | |
| Number of days of payables | days | 61.39 | 65.86 | 67.19 | 44.46 | 34.43 |
May 31, 2025 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.95
= 61.39
The data indicates a noteworthy upward trend in the number of days of payables for Neogen Corporation over the period from May 31, 2021, to May 31, 2025. Specifically, the average number of days the company takes to settle its payables increased from approximately 34.43 days in 2021 to 44.46 days in 2022, reflecting a roughly 10-day extension in payment terms within one year. This upward movement continued sharply, with the payables period reaching approximately 67.19 days in 2023, almost doubling compared to the 2021 figure.
Following this peak, the days of payables slightly decreased to around 65.86 days in 2024 and further declined to approximately 61.39 days in 2025. Despite this slight reduction, the overall trend from 2021 to 2025 clearly signifies a gradual extension in the company's accounts payable cycle.
From a financial analysis perspective, the increasing days of payables may suggest that Neogen Corporation is negotiating longer payment terms with suppliers, potentially improving short-term cash flow. However, prolonged payables could also raise concerns regarding supplier relationships or the company’s liquidity management strategies. Overall, the trend indicates a strategic shift toward extending payment durations over the analyzed period.
Peer comparison
May 31, 2025