Neogen Corporation (NEOG)
Financial leverage ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,548,830 | 4,554,430 | 992,929 | 920,192 | 797,182 |
| Total stockholders’ equity | US$ in thousands | 3,144,140 | 3,134,220 | 887,374 | 840,377 | 725,177 |
| Financial leverage ratio | 1.45 | 1.45 | 1.12 | 1.09 | 1.10 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,548,830K ÷ $3,144,140K
= 1.45
The financial leverage ratio of Neogen Corporation has shown a relatively stable trend from May 31, 2020, to May 31, 2021, indicating a slight decrease from 1.10 to 1.09. However, there was a notable increase in financial leverage from May 31, 2021, to May 31, 2022, with the ratio rising to 1.12. The most significant shift occurred between May 31, 2022, and May 31, 2023, where the ratio spiked to 1.45, suggesting a substantial increase in financial risk and dependency on debt. This elevated level of financial leverage persisted through May 31, 2024, maintaining the ratio at 1.45. Overall, the increasing trend in the financial leverage ratio indicates a growing reliance on debt financing by Neogen Corporation in recent years.
Peer comparison
May 31, 2024