Neogen Corporation (NEOG)

Working capital turnover

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Revenue	US$ in thousands	894,661	924,222	822,447	527,159	468,459
Total current assets	US$ in thousands	576,937	589,233	585,931	626,798	591,451
Total current liabilities	US$ in thousands	174,011	154,323	145,472	77,844	53,599
Working capital turnover		2.22	2.13	1.87	0.96	0.87

May 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $894,661K ÷ ($576,937K – $174,011K)
= 2.22

The working capital turnover ratio for Neogen Corporation demonstrates a consistent upward trajectory over the period from May 31, 2021, to May 31, 2025. Specifically, the ratio increased from 0.87 in 2021 to 0.96 in 2022, indicating a modest improvement in the efficiency of using working capital to generate sales. This upward trend accelerates significantly in subsequent years, reaching 1.87 in 2023, then continuing to improve to 2.13 in 2024 and further to 2.22 in 2025.

This progressive increase in the ratio suggests that Neogen Corporation has been increasingly effective at utilizing its working capital to support its revenue-generating activities. The movement toward higher turnover signifies enhanced operational efficiency, potentially reflecting better inventory management, receivables collection, or overall asset utilization. The notable growth in the ratio from 2022 onward indicates a strategic or operational improvement that has accelerated the company's capacity to convert its working capital into sales over time.