Neogen Corporation (NEOG)

Total asset turnover

		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	May 31, 2019
Revenue (ttm)	US$ in thousands	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	718,610
Total assets	US$ in thousands	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	695,740
Total asset turnover		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	1.03

February 29, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,817,638K ÷ $4,582,490K
= 0.40

The total asset turnover ratio of Neogen Corporation has shown fluctuations over the past several quarters. The ratio ranged from a low of 0.27 in August 2022 to a high of 1.09 in August 2022, indicating variability in how efficiently the company is generating sales from its assets.

In general, a higher total asset turnover ratio signifies that a company is more effective in utilizing its assets to generate revenue. This is seen in the higher ratios recorded in the recent quarters. Conversely, lower ratios suggest a lower level of efficiency in converting assets into sales, as seen in the earlier quarters.

It is important to note that changes in the total asset turnover ratio could be influenced by various factors, such as changes in sales volume, asset utilization, or asset structure. Analyzing the trend of this ratio over time can provide insights into Neogen Corporation's operational efficiency and asset management practices.