Neogen Corporation (NEOG)

Total asset turnover

		May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Revenue	US$ in thousands	1,616,090	1,054,320	936,918	836,340	828,372
Total assets	US$ in thousands	4,554,430	992,929	920,192	797,182	695,740
Total asset turnover		0.35	1.06	1.02	1.05	1.19

May 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,616,090K ÷ $4,554,430K
= 0.35

The total asset turnover ratio of Neogen Corp. has exhibited a declining trend over the past five years, decreasing from 0.60 in 2019 to 0.18 in 2023. This indicates that the company's ability to generate sales from its total assets has decreased significantly. A lower total asset turnover ratio may suggest inefficiency in asset utilization and potential challenges in effectively converting assets into revenue. It would be prudent for stakeholders to closely monitor the company's asset management strategies and operational efficiency to address this declining trend.