Neogen Corporation (NEOG)

Number of days of payables

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 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
Payables turnover		5.95	6.42	5.85	7.49	5.54	5.08	4.05	5.08	5.43	6.17	4.21	10.59	8.21	11.84	7.91	11.72	10.60	10.36	11.24	10.10
Number of days of payables	days	61.39	56.83	62.43	48.76	65.86	71.89	90.19	71.79	67.19	59.20	86.74	34.47	44.46	30.83	46.12	31.15	34.43	35.22	32.47	36.13

May 31, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.95
= 61.39

The trend in Neogen Corporation’s number of days of payables indicates significant fluctuations over the analyzed period. Initially, the average payable duration decreased from 36.13 days as of August 31, 2020, to a low of 30.83 days by February 28, 2022, suggesting improvements in paying suppliers more promptly. Following this period, there was a notable increase, with payables extending to 44.46 days by May 2022 and further rising to 86.74 days by November 2022, marking a substantial elongation in payment periods. This upward trend continued into 2023, reaching 71.79 days as of August 31, 2023, before peaking at 90.19 days as of November 30, 2023, reflecting a deliberate extension of payment terms.

Subsequently, a reduction was observed, with the days of payables decreasing to 71.89 days as of February 29, 2024, and further diminishing to 65.86 days by May 31, 2024. The trend reversed somewhat thereafter, with an increase to 48.76 days by August 31, 2024, and a subsequent rise again to 62.43 days as of November 30, 2024. As of February 28, 2025, the number of payable days stands at 56.83, with a slight projected increase to 61.39 days by May 2025.

Overall, the data reflects periods of both tightening and loosening in Neogen’s payment practices. Extended payable durations, particularly observed in late 2022 and 2023, suggest changes in credit management strategies or cash flow policies, possibly utilizing extended payment terms to optimize liquidity. Conversely, reductions in payable days may indicate efforts to improve supplier relationships or mitigate risks associated with overly extended payables.