Neogen Corporation (NEOG)

Debt-to-assets ratio

		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	Aug 31, 2019
Long-term debt	US$ in thousands	889,129	887,653	886,915	886,177	885,439	884,701	923,962	—	0	—	—	—	—	—	—	—	—	—	—	—
Total assets	US$ in thousands	4,503,170	4,582,490	4,602,420	4,561,100	4,554,430	4,508,760	4,563,240	977,405	992,929	981,205	967,934	932,106	920,192	880,216	845,626	821,592	797,182	773,501	750,591	721,144
Debt-to-assets ratio		0.20	0.19	0.19	0.19	0.19	0.20	0.20	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

August 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $889,129K ÷ $4,503,170K
= 0.20

The debt-to-assets ratio for Neogen Corporation has been relatively consistent over the past few quarters, ranging between 0.19 and 0.20. This indicates that the company has maintained a conservative approach to debt financing, with a significant portion of its assets being financed by equity rather than debt.

The sudden drop to 0.00 in the debt-to-assets ratio in the last three quarters suggests that Neogen Corporation may have significantly reduced its debt levels or possibly paid off all its debt during that period. This could be a strategic move to strengthen its financial position, reduce interest expenses, or position the company for future growth opportunities without the burden of debt.

Overall, the consistent and low debt-to-assets ratio of Neogen Corporation reflects a strong financial standing and prudent financial management practices, which may instill confidence in investors and creditors regarding the company's ability to meet its obligations and pursue growth initiatives.