Neogen Corporation (NEOG)

Number of days of payables

		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	May 31, 2019
Payables turnover		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	17.96
Number of days of payables	days	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	20.32

February 29, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.39
= 35.11

Neogen Corporation's number of days of payables has shown some fluctuation over the past quarters, ranging from a low of 19.26 days to a high of 46.48 days. The average number of days of payables over the analyzed period is approximately 27.27 days.

A lower number of days of payables indicates that the company takes less time to pay its suppliers, which could be a positive sign of efficiently managing its working capital. Conversely, a higher number of days of payables could suggest that the company is taking longer to settle its payables, potentially indicating liquidity issues or strained relationships with suppliers.

It is important to consider the industry benchmarks and trends when analyzing the number of days of payables to understand its implications on Neogen Corporation's financial performance and operational efficiency. Further investigation into the underlying reasons for the fluctuations in this ratio would provide additional insights into the company's financial health and management of its payables.