Neogen Corporation (NEOG)
Financial leverage ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,443,840 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,071,250 | 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 |
| Financial leverage ratio | 1.66 | 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 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,443,840K ÷ $2,071,250K
= 1.66
The financial leverage ratio of Neogen Corporation demonstrates a relatively stable pattern from August 2020 through early 2022, maintaining a consistent value of approximately 1.09. During this period, the company's leverage remained steady, indicating a balanced approach to debt and equity financing with minimal fluctuations.
Beginning around November 2022, a noticeable upward trend is observed, with the ratio increasing significantly from approximately 1.47 to 1.52 by the end of 2024. This escalation reflects a heightened degree of financial leverage, suggesting that the company has increased its reliance on borrowed funds relative to equity. Notably, the ratio peaks at 1.66 in May 2025.
The pattern indicates a shift towards greater leverage over the recent years, which could imply that Neogen Corporation has been financing expansion or operational needs through increased debt. While increased leverage can amplify returns when operations perform well, it also raises financial risk due to higher debt obligations. Overall, the company's leverage structure has transitioned from a stable, conservative level into a moderately higher risk zone, correlating with a strategic or operational shift during the specified period.
Peer comparison
May 31, 2025