Neogen Corporation (NEOG)
Debt-to-assets ratio
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 885,439 | 0 | — | — | — |
| Total assets | US$ in thousands | 4,554,430 | 992,929 | 920,192 | 797,182 | 695,740 |
| Debt-to-assets ratio | 0.19 | 0.00 | 0.00 | 0.00 | 0.00 |
May 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $885,439K ÷ $4,554,430K
= 0.19
The debt-to-assets ratio of Neogen Corp. has shown a significant increase over the years, reaching 0.19 as of May 31, 2023. This indicates that the company's reliance on debt to finance its assets has grown. In the previous four years, the ratio stood at 0.00, suggesting that the company was debt-free relative to its assets during that period. The sudden uptick in the ratio in 2023 may signal a strategic shift in the company's financing decisions, possibly to support growth or investment opportunities. It is important for stakeholders to monitor this trend closely to assess the impact on the company's financial risk and overall stability.
Peer comparison
May 31, 2023