Neogen Corporation (NEOG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.20 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.25 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.23 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.33 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Neogen Corporation has shown consistently low levels of solvency risk as indicated by its debt-related ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at or near 0% for the period from November 2019 to August 2022. This implies that the company has had minimal debt relative to its assets, capital, and equity during this time.
However, there has been a slight increase in these ratios starting in November 2022, with values reaching 0.20 for Debt-to-assets ratio, 0.23 for Debt-to-capital ratio, and 0.30 for Debt-to-equity ratio by November 2022. These ratios have continued to increase gradually until November 2024, with Debt-to-equity ratio reaching 0.33, indicating a slight increase in leverage and reliance on debt funding.
The Financial leverage ratio has also shown an increasing trend over the same period, rising from 1.09 in November 2019 to 1.52 in November 2024. This indicates that the company's reliance on debt as a source of financing has increased over time.
Overall, while the solvency ratios for Neogen Corporation have remained low historically, there has been a recent uptick in debt levels and leverage, suggesting a potential shift towards a slightly higher solvency risk profile in the recent years.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -19.75 | 0.80 | 0.99 | 1.08 | 0.77 | 0.84 | 1.34 | 2.72 | 650.53 | 814.14 | 574.02 | 192.45 | 85.77 | 45.95 | 23.21 | 15.85 | 13.48 | 11.27 | 11.48 | 12.33 |
Neogen Corporation's interest coverage ratio has experienced significant fluctuations over the reporting periods. The interest coverage ratio, which measures the company's ability to meet interest payment obligations, was strong at 12.33 in November 2019 but gradually declined to 0.77 in August 2023, indicating a potential strain on the company's ability to cover its interest expenses.
The ratio then saw a notable improvement to 1.08 in November 2023, suggesting a slight recovery in the company's ability to cover its interest payments. However, this improvement was short-lived as the interest coverage ratio dropped to 0.99 in February 2024 and further decreased to 0.80 in August 2024, indicating ongoing challenges in meeting interest obligations.
Moreover, the interest coverage ratio turned negative in November 2024, reaching -19.75, which raises concerns about the company's ability to cover its interest expenses solely from its operating income.
Overall, the fluctuating trend in Neogen Corporation's interest coverage ratio highlights the importance of closely monitoring the company's financial performance and liquidity position to ensure its ability to meet debt obligations and sustain its operations in the long run.