Neogen Corporation (NEOG)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,582,490 | 4,602,420 | 4,561,100 | 4,554,430 | 4,508,760 | 4,563,240 | 977,405 | 992,929 | 981,205 | 967,934 | 932,106 | 920,192 | 880,216 | 845,626 | 821,592 | 797,182 | 773,501 | 750,591 | 721,144 | 695,740 |
| 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 |
| Financial leverage ratio | 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 | 1.09 | 1.09 | 1.09 | 1.09 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,582,490K ÷ $3,146,170K
= 1.46
Neogen Corporation's financial leverage ratio has shown some variation over the past few periods, ranging from 1.09 to 1.47. The ratio measures the company's degree of financial leverage and indicates the proportion of debt in its capital structure. A higher financial leverage ratio suggests that a company is relying more on debt financing, which can increase both potential returns and risks.
The fluctuations in Neogen Corporation's financial leverage ratio may be attributed to changes in its debt levels and capital structure decisions. A ratio above 1 indicates that the company has more debt than equity in its capital structure, while a ratio below 1 signifies a lower reliance on debt financing.
It is essential for investors and stakeholders to closely monitor changes in the financial leverage ratio as it can impact the company's financial health, risk profile, and ability to meet its financial obligations. Consistent monitoring and analysis of this ratio can provide valuable insights into Neogen Corporation's financial strategy and risk management practices.
Peer comparison
Feb 29, 2024