Neogen Corporation (NEOG)
Debt-to-equity 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-equity ratio | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 |
May 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $885,439K ÷ $3,134,220K
= 0.28
The debt-to-equity ratio for Neogen Corp. has shown a significant increase in the most recent period, reaching 0.28 from 0.00 in the previous year and for the five-year period as a whole. This indicates that the company has started to utilize debt as a source of financing, thus changing its capital structure. It is essential to consider the reasons behind this change and to analyze the potential impact on the company's financial stability and risk profile. Overall, the observed increase in the debt-to-equity ratio suggests a shift in Neogen Corp.'s financing strategy, which warrants a more in-depth examination of its financial position and future prospects.
Peer comparison
May 31, 2023