Neogen Corporation (NEOG)

Financial leverage ratio

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 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
Total assets	US$ in thousands	4,036,340	4,054,090	4,503,170	4,584,160	4,582,490	4,602,420	4,561,100	4,554,430	4,508,760	4,563,240	977,405	992,929	979,898	966,680	932,106	920,192	880,216	845,626	821,592	797,182
Total stockholders’ equity	US$ in thousands	2,660,350	2,669,070	3,135,190	3,144,140	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
Financial leverage ratio		1.52	1.52	1.44	1.46	1.46	1.46	1.45	1.45	1.44	1.47	1.11	1.12	1.12	1.12	1.09	1.09	1.09	1.09	1.09	1.10

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,036,340K ÷ $2,660,350K
= 1.52

Neogen Corporation's financial leverage ratio has shown fluctuations over the period from May 31, 2020, to February 28, 2025. The ratio started at 1.10 in May 2020 and remained relatively stable at around 1.09 from August 2020 to February 2022. However, there was a notable increase to 1.12 by November 2022, followed by further increases reaching 1.52 by February 2025.

The increasing trend in the financial leverage ratio indicates that Neogen Corporation has been relying more on debt to finance its operations and growth. This could lead to higher financial risk as the company takes on more debt obligations. It is important for stakeholders to closely monitor the trend in the financial leverage ratio to assess the company's ability to repay its debts and manage its financial leverage effectively.