Neogen Corporation (NEOG)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 3,134,220 | 887,374 | 840,377 | 725,177 | 637,899 |
| Debt-to-capital ratio | 0.22 | 0.00 | 0.00 | 0.00 | 0.00 |
May 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $885,439K ÷ ($885,439K + $3,134,220K)
= 0.22
The debt-to-capital ratio of Neogen Corp. has shown a significant increase from 0.00 in 2019 to 0.22 in 2023. This increase indicates that the company has taken on more debt in relation to its capital over the past five years. The rise in the debt-to-capital ratio suggests that Neogen Corp. may have increased its reliance on debt financing to support its operations or growth initiatives. It is important for stakeholders to monitor this trend as higher leverage can potentially increase financial risk and impact the company's ability to meet its debt obligations.
Peer comparison
May 31, 2023