Neogen Corporation (NEOG)

Working capital 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 current assets	US$ in thousands	602,471	624,373	583,793	585,931	555,371	643,333	607,907	626,798	609,633	611,204	609,124	591,451	555,304	578,426	556,699	537,406	514,875	500,183	473,548	449,529
Total current liabilities	US$ in thousands	157,844	176,612	138,130	145,472	107,155	152,558	67,004	77,844	65,710	62,673	50,762	53,599	45,942	44,587	46,442	48,489	39,135	38,791	40,427	38,251
Working capital turnover		4.09	4.02	3.99	3.62	3.13	2.50	1.96	1.92	1.66	1.39	1.31	1.29	1.32	1.42	1.46	1.49	1.53	1.57	1.67	1.75

February 29, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,817,638K ÷ ($602,471K – $157,844K)
= 4.09

Neogen Corporation has shown a consistent improvement in its working capital turnover ratio over the past few quarters. The working capital turnover ratio measures how efficiently a company uses its working capital to generate revenue.

From November 2019 to February 2024, Neogen's working capital turnover ratio has increased from 1.75 to 4.09. This indicates that the company is able to generate more revenue relative to its working capital. A higher working capital turnover ratio generally reflects better liquidity management and more efficient use of resources.

The upward trend in the working capital turnover suggests that Neogen has been optimizing its working capital levels, possibly by managing inventory and accounts receivable effectively. This efficiency can have positive implications for the company's overall financial health and operational performance.

Overall, the increasing trend in Neogen Corporation's working capital turnover ratio demonstrates a positive shift towards greater efficiency and effectiveness in utilizing working capital resources to drive revenue generation.