Neogen Corporation (NEOG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 |
| Debt-to-capital ratio | 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 | 0.00 |
| Debt-to-equity ratio | 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 | 0.00 |
| 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 |
Neogen Corporation's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable, ranging from 0.19 to 0.20 over the past few periods. This ratio suggests that Neogen Corporation finances about 19% to 20% of its total assets through debt.
Similarly, the debt-to-capital and debt-to-equity ratios have also remained consistent, with values around 0.22 and 0.28 respectively. These ratios indicate that Neogen Corporation relies on debt for approximately 22% of its capital structure and maintains an equity cushion of about 28%.
The financial leverage ratio has fluctuated slightly but generally stayed within the range of 1.44 to 1.47. This ratio signifies that for every dollar of equity, Neogen Corporation has borrowed around $1.44 to $1.47.
Overall, Neogen Corporation's solvency ratios demonstrate a stable and balanced capital structure with a moderate reliance on debt to finance its operations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 12.89 |
Neogen Corporation's interest coverage ratio fluctuated over the past few years, with a range spanning from as low as 0.77 to as high as 814.14. Generally, an interest coverage ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which raises concerns about the company's ability to meet its debt obligations.
The trend in Neogen Corporation's interest coverage ratio shows volatility, with periods of significantly low ratios, suggesting potential financial strain, as well as very high ratios, which could indicate an anomaly or a one-time event affecting the ratio calculation. A sudden spike in the interest coverage ratio to extremely high levels, such as 650.53 and 814.14, may be indicative of a one-time extraordinary gain or an error in data reporting.
It is important to further investigate the reasons behind these extreme fluctuations in the interest coverage ratio to assess the company's financial health accurately. Monitoring the interest coverage ratio in conjunction with other financial ratios and key performance indicators would provide a more comprehensive view of Neogen Corporation's financial stability and debt repayment capacity.