Neogen Corporation (NEOG)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	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	637,899
Debt-to-equity ratio		0.28	0.28	0.28	0.28	0.28	0.30	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-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $887,653K ÷ $3,146,170K
= 0.28

The debt-to-equity ratio of Neogen Corporation has been consistently low at 0.28 over the last few quarters, indicating a conservative capital structure with a relatively low level of debt compared to equity. This suggests that the company relies more on equity financing rather than debt to fund its operations and growth strategies. The trend of a stable debt-to-equity ratio over multiple periods reflects the company's prudent financial management and risk aversion towards excessive leverage. Additionally, the zero values recorded in some periods indicate that there was no debt present on the balance sheet during those particular quarters. Overall, Neogen Corporation's low debt-to-equity ratio implies a strong financial position and a decreased risk of financial distress resulting from high levels of debt.