Neogen Corporation (NEOG)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 161.61 | 155.56 | 157.54 | 150.07 | 146.11 | 129.06 | 111.97 | 117.27 | 140.79 | 148.92 | 164.72 | 157.12 | 148.46 | 144.33 | 141.88 | 145.05 | 150.33 | 145.14 | 156.42 | 156.36 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 161.61 | 155.56 | 157.54 | 150.07 | 146.11 | 129.06 | 111.97 | 117.27 | 140.79 | 148.92 | 164.72 | 157.12 | 148.46 | 144.33 | 141.88 | 145.05 | 150.33 | 145.14 | 156.42 | 156.36 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 161.61 + — – —
= 161.61
The cash conversion cycle of Neogen Corporation, which measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuations over the past few years.
From May 2020 to February 2022, the cash conversion cycle remained relatively stable, ranging between 140 to 160 days. However, from May 2022 to August 2024, there was a notable increase in the cash conversion cycle, reaching a peak of 164.72 days in August 2022. This increase indicates that the company may have been taking longer to convert its investments into sales and ultimately cash during this period.
Subsequently, from November 2024 to February 2025, there was a slight decrease in the cash conversion cycle, indicating an improvement in the company's efficiency in managing its working capital and converting it into cash.
Overall, monitoring the cash conversion cycle is crucial as it provides insight into how effectively the company is managing its operations and working capital to generate cash flows.
Peer comparison
Feb 28, 2025