Neogen Corporation (NEOG)

Number of days of payables

		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
Payables turnover		14.73	10.39	8.16	10.37	10.83	11.96	7.85	17.87	13.39	18.95	12.44	18.01	16.23	15.89	17.20	15.53	13.45	18.26	17.56	18.73
Number of days of payables	days	24.79	35.11	44.73	35.18	33.70	30.53	46.48	20.42	27.26	19.26	29.35	20.27	22.49	22.97	21.22	23.50	27.14	19.99	20.79	19.49

August 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 14.73
= 24.79

Neogen Corporation's number of days of payables has fluctuated over the past few years, ranging from a low of 19.26 days to a high of 46.48 days. The average number of days of payables over this period is 27.25 days. This indicates that, on average, Neogen takes about a month to pay off its trade payables.

A lower number of days of payables suggests that the company is able to pay off its obligations quickly, potentially indicating strong cash management practices or good relationships with suppliers. On the other hand, a higher number of days of payables could indicate that the company is taking longer to settle its debts, which may have implications for its liquidity or supplier relationships.

It's important for Neogen Corporation to monitor its number of days of payables along with other financial ratios to ensure a healthy and sustainable financial position in the long term.