Neogen Corporation (NEOG)

Financial leverage ratio

		Nov 30, 2024	Aug 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	Feb 29, 2020	Nov 30, 2019
Total assets	US$ in thousands	4,054,090	4,503,170	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
Total stockholders’ equity	US$ in thousands	2,669,070	3,135,190	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
Financial leverage ratio		1.52	1.44	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

November 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,054,090K ÷ $2,669,070K
= 1.52

The financial leverage ratio of Neogen Corporation has shown consistency around the range of 1.09 to 1.12 from November 2019 to May 2021. However, starting from November 2021, there has been a noticeable increase in the financial leverage ratio, reaching a peak of 1.52 by November 2024. This indicates that the company's reliance on debt has been increasing over time, possibly to finance growth opportunities or other strategic investments. An increasing financial leverage ratio may imply higher financial risk as the company has taken on more debt relative to its equity. It would be important for stakeholders to monitor this trend closely to ensure that the company's leverage remains sustainable and does not pose a threat to its financial stability in the long run.