Neogen Corporation (NEOG)

Total asset turnover

		Aug 31, 2024	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
Revenue (ttm)	US$ in thousands	1,780,298	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
Total assets	US$ in thousands	4,503,170	4,582,490	4,602,420	4,561,100	4,554,430	4,508,760	4,563,240	977,405	992,929	981,205	967,934	932,106	920,192	880,216	845,626	821,592	797,182	773,501	750,591	721,144
Total asset turnover		0.40	0.40	0.39	0.39	0.35	0.31	0.27	1.09	1.06	0.92	0.79	0.78	0.75	0.77	0.90	0.90	0.91	0.94	0.96	1.00

August 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,780,298K ÷ $4,503,170K
= 0.40

The total asset turnover ratio measures a company's ability to generate sales using its assets. A higher ratio indicates that the company is more efficient in utilizing its assets to generate revenue.

In the case of Neogen Corporation, the total asset turnover has fluctuated over the past several periods, ranging from 0.27 to 1.09. In recent periods, the total asset turnover ratio has generally been around 0.40, indicating that the company generates $0.40 in sales for every $1 in total assets.

The significant increase in total asset turnover to 1.09 in August 2022 could indicate a period of exceptional efficiency in asset utilization, where the company generated over $1 in sales for every $1 in assets. However, this ratio may be an outlier due to specific events or changes in business operations during that period.

Overall, fluctuations in the total asset turnover ratio for Neogen Corporation suggest variations in the company's efficiency in utilizing its assets to drive sales. Further analysis of the underlying factors contributing to these fluctuations is necessary to gain a more comprehensive understanding of Neogen's operational performance.