Neogen Corporation (NEOG)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	1,817,638	1,800,899	1,778,001	1,592,370	1,401,365	1,227,465	1,062,406	1,054,318	901,557	761,778	730,744	692,784	674,433	757,462	743,068	727,266	727,954	723,616	722,206	718,610
Receivables	US$ in thousands	173,592	150,498	137,669	153,253	146,393	142,711	93,112	99,674	92,978	92,498	87,291	91,823	87,241	79,931	77,685	84,681	80,692	85,377	79,112	82,582
Receivables turnover		10.47	11.97	12.92	10.39	9.57	8.60	11.41	10.58	9.70	8.24	8.37	7.54	7.73	9.48	9.57	8.59	9.02	8.48	9.13	8.70

February 29, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,817,638K ÷ $173,592K
= 10.47

Neogen Corporation's receivables turnover has exhibited fluctuations over the past few quarters. The ratio measures how efficiently the company is collecting outstanding receivables from sales. A higher receivables turnover implies that the company is collecting its outstanding receivables more quickly.

The receivables turnover increased from 8.70 in Nov 2019 to a peak of 12.92 in Aug 2023, indicating an improvement in the efficiency of receivables collection. However, there were fluctuations in the ratio over the period, with the lowest point being 7.54 in May 2021.

Overall, the average receivables turnover for the period analyzed was around 9.65, showcasing a moderate efficiency in collecting outstanding receivables. Neogen Corporation should strive to maintain a healthy receivables turnover ratio to ensure the timely collection of funds and optimize working capital management.