Neogen Corporation (NEOG)

Interest coverage

		May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	5,212	58,618	74,169	67,523	68,094
Interest expense	US$ in thousands	27,254	72	78	23,178	22,489
Interest coverage		0.19	814.14	950.88	2.91	3.03

May 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $5,212K ÷ $27,254K
= 0.19

The interest coverage ratio for Neogen Corp. in 2023 is 0.71. This indicates that the company's earnings before interest and taxes are not enough to cover its interest expenses. It is concerning that no interest coverage data was reported in the previous years. A low or no interest coverage ratio could signal potential financial distress, as the company may struggle to meet its debt obligations. It is important to further investigate the company's financial health and ability to generate sufficient earnings to cover its interest costs.