Neogen Corporation (NEOG)
Solvency ratios
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.22 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.45 | 1.12 | 1.09 | 1.10 | 1.09 |
The solvency ratios of Neogen Corp. indicate the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has increased from 0.00 in 2019 and 2020 to 0.19 in 2023, suggesting that the company has started to use debt to finance its assets. This indicates a shift in the company's capital structure.
The debt-to-capital ratio followed a similar pattern, increasing from 0.00 in 2019 and 2020 to 0.22 in 2023, indicating a higher reliance on debt in the company's capital structure.
The debt-to-equity ratio also increased from 0.00 in 2019 and 2020 to 0.28 in 2023, indicating a higher level of financial leverage in the company's operations.
The financial leverage ratio has also shown an increasing trend, reaching 1.45 in 2023 from 1.09 in 2019, indicating an increased level of financial risk as the company takes on more debt.
Overall, these ratios suggest a shift towards a more leveraged capital structure for Neogen Corp., which could increase the company's financial risk and impact its ability to meet its long-term obligations.
Coverage ratios
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 0.19 | 814.14 | 950.88 | 2.91 | 3.03 |
The interest coverage ratio for Neogen Corp. in 2023 is 0.71. This indicates that the company's earnings before interest and taxes (EBIT) are not sufficient to cover its interest expenses. A ratio below 1 suggests that the company is not generating enough operating income to meet its interest obligations, raising concerns about its ability to service its debt. It's notable that data for the previous years is not available, so it's challenging to assess the trend in interest coverage over time. Additional information on the company's EBIT and interest expenses for the previous years would be needed to gain a better understanding of its financial stability.