Neogen Corporation (NEOG)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	3,135,190	3,146,170	3,147,570	3,146,180	3,134,220	3,125,560	3,106,260	883,798	887,374	875,544	865,476	855,363	840,377	807,683	777,395	751,546	725,177	711,871	690,917	660,306
Debt-to-capital ratio		0.22	0.22	0.22	0.22	0.22	0.22	0.23	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-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $889,129K ÷ ($889,129K + $3,135,190K)
= 0.22

The debt-to-capital ratio of Neogen Corporation has been relatively consistent at around 0.22 for the periods spanning August 31, 2024, to August 31, 2019. During this timeframe, the company has maintained a stable capital structure with debt contributing approximately 22% to its total capital on average.

Notably, there were instances where the debt-to-capital ratio showed a significant decrease to 0.00, notably in the periods from November 30, 2022, to August 31, 2022. This suggests that during those periods, Neogen Corporation either had significantly reduced debt levels or had a higher proportion of equity in its capital structure.

Overall, the consistent debt-to-capital ratio of 0.22 indicates that Neogen Corporation has been managing its debt levels effectively and has a balanced approach to financing its operations. Investors and stakeholders may view this as a positive sign of financial stability and prudent capital management practices.