Neogen Corporation (NEOG)

Financial leverage ratio

		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	Aug 31, 2019
Total assets	US$ in thousands	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	721,144
Total stockholders’ equity	US$ in thousands	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	660,306
Financial leverage ratio		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	1.09

August 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,503,170K ÷ $3,135,190K
= 1.44

Neogen Corporation's financial leverage ratio has been relatively stable over the past few quarters, averaging around 1.12 to 1.46. A financial leverage ratio of 1.12 indicates that the company has slightly more assets than liabilities, while ratios closer to 1.46 suggest a higher level of leverage, with more debt compared to equity.

It is important to note the significant increase in the financial leverage ratio in the November 2022 quarter, reaching 1.47, possibly indicating a temporary increase in debt levels or a decrease in equity during that period. However, this was followed by a decline in subsequent quarters back to more typical levels.

Overall, Neogen Corporation's financial leverage ratio suggests a relatively moderate level of leverage, with the company's capital structure reflecting a balance between debt and equity. Monitoring changes in this ratio over time can provide insights into the company's financial health and risk profile.