Neogen Corporation (NEOG)

Total asset turnover

		Nov 30, 2024	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
Revenue (ttm)	US$ in thousands	1,792,485	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
Total assets	US$ in thousands	4,054,090	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
Total asset turnover		0.44	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

November 30, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,792,485K ÷ $4,054,090K
= 0.44

Total asset turnover ratio measures the efficiency of Neogen Corporation in generating sales revenue from its total assets. A higher total asset turnover generally indicates that the company is effectively utilizing its assets to generate sales.

Looking at the data provided, Neogen Corporation's total asset turnover fluctuated over the periods examined. It stood at around 0.96 in November 2019 and gradually declined to 0.75 by May 2021. This declining trend suggests that the company may have been less efficient in generating sales from its assets during this period.

However, there was a notable improvement in the total asset turnover ratio from May 2022 onwards, reaching 1.09 by August 2022. This increase indicates that Neogen Corporation became more efficient in utilizing its assets to generate sales revenue during this period.

Subsequently, the total asset turnover ratio decreased to 0.40 as of November 2024, possibly signaling a decline in asset efficiency. It is important for the company to closely monitor this ratio to ensure optimal asset utilization and sustainable revenue generation in the future.