Neogen Corporation (NEOG)

Total asset turnover

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 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
Revenue (ttm)	US$ in thousands	894,661	905,996	913,828	912,199	924,222	929,238	918,681	919,085	822,447	720,730	630,719	531,203	527,159	514,491	502,956	487,439	468,459	450,108	433,268	426,071
Total assets	US$ in thousands	3,443,840	4,036,340	4,054,090	4,503,170	4,584,160	4,582,490	4,602,420	4,561,100	4,554,430	4,508,760	4,563,240	977,405	992,929	979,898	966,680	932,106	920,192	880,216	845,626	821,592
Total asset turnover		0.26	0.22	0.23	0.20	0.20	0.20	0.20	0.20	0.18	0.16	0.14	0.54	0.53	0.53	0.52	0.52	0.51	0.51	0.51	0.52

May 31, 2025 calculation

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

The total asset turnover ratio for Neogen Corporation demonstrates a noteworthy trend over the specified periods. From August 31, 2020, through May 31, 2022, the ratio remained relatively stable, fluctuating narrowly within the range of approximately 0.51 to 0.54. This stability indicates consistent efficiency in utilizing the company's assets to generate net sales during this period.

However, a significant decline is evident starting in November 2022, when the ratio drops sharply from approximately 0.52–0.54 range to 0.14. This dramatic decrease suggests a substantial reduction in asset productivity or a potential change in accounting practices, asset composition, or operations. Subsequent periods (February 2023 through May 2024) show a modest recovery, with the ratio gradually increasing from 0.16 to 0.20. The ratio stabilizes around this level through August 2024, then continues its upward trajectory to approximately 0.23 by November 2024 and 0.26 by May 2025.

Overall, prior to late 2022, Neogen's asset turnover was stable and indicative of steady operational efficiency. The abrupt decline starting in late 2022 signals a pronounced shift in how effectively the company utilizes its assets to generate sales, which could be attributable to factors such as asset impairments, strategic shifts, or operational disruptions. The subsequent gradual recovery suggests ongoing efforts to improve asset utilization or structural adjustments aimed at restoring efficiency levels.