Neogen Corporation (NEOG)

Total asset 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
Total assets	US$ in thousands	3,443,840	4,548,830	4,554,430	992,929	920,192
Total asset turnover		0.26	0.20	0.18	0.53	0.51

May 31, 2025 calculation

Total asset turnover = Revenue ÷ Total assets
= $894,661K ÷ $3,443,840K
= 0.26

The analysis of Neogen Corporation’s total asset turnover ratio over the specified period reveals notable fluctuations that reflect changes in the company's efficiency in utilizing its assets to generate sales.

From May 31, 2021, to May 31, 2022, the ratio experienced a modest increase from 0.51 to 0.53, indicating a slight improvement in asset utilization and operational efficiency during this period. However, between May 31, 2022, and May 31, 2023, the ratio declined sharply to 0.18, signifying a significant reduction in the efficiency of asset use relative to sales generated.

Subsequent periods show a modest recovery: the ratio increased marginally to 0.20 by May 31, 2024, and then further to 0.26 by May 31, 2025. These incremental increases suggest a gradual improvement in asset utilization, but the ratio remains substantially lower than the levels seen in 2021 and 2022.

Overall, the trend indicates a notable decrease in total asset turnover around 2023, followed by a slow recovering pattern. This decline may reflect a period of reduced operational efficiency, asset base changes, or strategic shifts affecting how effectively assets are employed to generate sales. The partial recovery suggests some stabilization or improvements in asset management, although the ratio has not yet returned to its prior higher levels observed in 2021 and 2022.