Neogen Corporation (NEOG)

Working capital turnover

		Nov 30, 2024	Aug 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	Feb 29, 2020	Nov 30, 2019
Revenue (ttm)	US$ in thousands	1,792,485	1,780,298	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
Total current assets	US$ in thousands	570,447	540,650	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
Total current liabilities	US$ in thousands	151,195	122,689	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
Working capital turnover		4.28	4.26	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

November 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,792,485K ÷ ($570,447K – $151,195K)
= 4.28

Neogen Corporation's working capital turnover has shown a fluctuating trend over the period analyzed. The ratio was 1.57 in November 2019 and gradually declined to 1.29 by May 2021, indicating a decreasing efficiency in utilizing its working capital to generate sales. However, from February 2022 onwards, there has been a significant improvement in the working capital turnover ratio, reaching a peak of 4.28 in November 2024. This suggests that the company has been able to better manage its working capital to support higher levels of sales activity. The increasing trend signifies improved efficiency in the utilization of working capital to generate revenue for the company.