Neogen Corporation (NEOG)

Total asset turnover

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Revenue	US$ in thousands	924,222	822,447	527,159	468,459	418,170
Total assets	US$ in thousands	4,548,830	4,554,430	992,929	920,192	797,182
Total asset turnover		0.20	0.18	0.53	0.51	0.52

May 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $924,222K ÷ $4,548,830K
= 0.20

The total asset turnover of Neogen Corporation has been relatively stable over the past few years, ranging from 0.51 to 0.53, indicating that the company is generating $0.51 to $0.53 in revenue for every $1 of assets it owns. However, there was a significant decline in total asset turnover in the most recent year, dropping to 0.20 in May 31, 2024, which may raise concerns about the company's efficiency in utilizing its assets to generate sales. Further investigation into the reasons behind this sharp decline is recommended to assess the company's operational performance and potential areas for improvement.