Neogen Corporation (NEOG)

Working capital turnover

		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	May 31, 2020
Revenue (ttm)	US$ in thousands	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	418,170
Total current assets	US$ in thousands	551,713	570,447	540,650	589,233	602,471	624,373	583,793	585,931	555,371	643,333	607,907	626,798	608,326	609,950	609,124	591,451	555,304	578,426	556,699	537,406
Total current liabilities	US$ in thousands	141,200	151,195	122,689	154,323	157,844	176,612	138,130	145,472	107,155	152,558	67,004	77,844	64,403	61,419	50,762	53,599	45,942	44,587	46,442	48,489
Working capital turnover		2.21	2.18	2.18	2.13	2.09	2.05	2.06	1.87	1.61	1.29	0.98	0.96	0.95	0.92	0.87	0.87	0.88	0.81	0.84	0.86

February 28, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $905,996K ÷ ($551,713K – $141,200K)
= 2.21

Neogen Corporation's working capital turnover has shown a positive trend over the past few years, steadily increasing from 0.86 on May 31, 2020, to 2.21 on February 28, 2025. This indicates that the company has been more effective in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is efficiently managing its working capital and operating cycle, which can lead to improved liquidity and profitability. Neogen Corporation's increasing working capital turnover ratio is a positive sign of its operational efficiency and financial health.