Neogen Corporation (NEOG)

Debt-to-assets ratio

		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	May 31, 2019
Long-term debt	US$ in thousands	887,653	886,915	886,177	885,439	884,701	923,962	—	0	—	—	—	—	—	—	—	—	—	—	—	—
Total assets	US$ in thousands	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	695,740
Debt-to-assets ratio		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	0.00

February 29, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $887,653K ÷ $4,582,490K
= 0.19

The debt-to-assets ratio of Neogen Corporation has remained relatively stable at around 0.19 to 0.20 in the recent periods. This ratio indicates that Neogen Corporation relies on debt for a small portion of its asset financing, with a significant portion of its assets being financed by equity.

It is notable that in some periods, such as in August 2022 and prior, the company had a debt-to-assets ratio of 0.00, suggesting that there was no debt in relation to assets during those periods. This could indicate a strategic decision to operate with minimal debt or that the company had paid off its debts during those periods.

Overall, the consistent low debt-to-assets ratio of Neogen Corporation suggests a conservative approach to financing its operations and investments, which can be viewed positively as it indicates a lower financial risk and reduced dependency on debt financing.