Neogen Corporation (NEOG)
Receivables turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 894,661 | 924,222 | 822,447 | 527,159 | 468,459 |
| Receivables | US$ in thousands | 153,384 | 173,005 | 153,253 | 99,674 | 91,823 |
| Receivables turnover | 5.83 | 5.34 | 5.37 | 5.29 | 5.10 |
May 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $894,661K ÷ $153,384K
= 5.83
The receivables turnover ratio for Neogen Corporation demonstrates a generally consistent and gradually improving trend over the specified period. As of May 31, 2021, the ratio was 5.10, indicating that the company collected its average accounts receivable approximately 5.10 times during the fiscal year. By May 31, 2022, the ratio increased slightly to 5.29, reflecting a marginal improvement in the efficiency of receivables collection. This upward movement continued into May 31, 2023, with the ratio reaching 5.37, further suggesting a steady enhancement in receivables management.
In the subsequent periods, the ratio slightly declined to 5.34 as of May 31, 2024, which remains close to the previous year's figure, implying that collection efficiency stabilized during this interval. The most recent data point, as of May 31, 2025, indicates a notable increase to 5.83, representing a significant improvement in the company's receivables turnover compared to earlier years.
Overall, the trend reflects improvements in receivables management and collection efficiency over the five-year span. The incremental increases suggest that Neogen Corporation has been able to efficiently convert its receivables into cash, which can positively impact liquidity and operational cash flow. The recent upward movement in the ratio warrants attention as it indicates a potential strengthening of the company's credit and collection policies.
Peer comparison
May 31, 2025