Neogen Corporation (NEOG)
Solvency ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.52 | 1.52 | 1.44 | 1.46 | 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 |
The solvency ratios of Neogen Corporation indicate a consistently strong financial position with minimal debt relative to its assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently reported as 0.00, indicating that the company operates with no borrowed funds in relation to its total assets, capital, and equity.
The financial leverage ratio, which measures the proportion of a company's total assets that are financed by debt, has remained relatively stable over the years. Starting at 1.10 in May 2020 and hovering around 1.09-1.12 until November 2022, there is a noticeable increase to 1.47 by November 2022, suggesting a higher level of debt relative to the company's assets. This ratio then gradually decreases to 1.52 by February 2025, which could indicate that the company has taken steps to reduce its leverage over time.
Overall, Neogen Corporation's solvency ratios reflect a sound financial structure and a conservative approach to managing debt, which is important for financial stability and risk management.
Coverage ratios
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -5.94 | -5.84 | 0.64 | 0.88 | 1.93 | 2.00 | 1.49 | 1.94 | 1.01 | 1.37 | 36.47 | 80.85 | 196.49 | 236.03 | 86.34 | 45.95 | 23.21 | 15.85 | 13.48 | 11.27 |
Neogen Corporation's interest coverage ratio has shown a fluctuating trend over the past few years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A higher ratio indicates the company is more capable of covering its interest expenses.
From May 31, 2020, to August 31, 2021, Neogen Corporation's interest coverage ratio consistently increased from 11.27 to a peak of 86.34, indicating a significant improvement in its ability to cover interest expenses. However, from November 30, 2021, to August 31, 2024, the interest coverage ratio experienced a sharp decline, with negative values recorded in the last few periods.
The declining trend in the interest coverage ratio suggests that Neogen Corporation may be facing challenges in meeting its interest obligations. Negative values indicate that the company's earnings may not be sufficient to cover its interest expenses, which could raise concerns about its financial health and ability to service its debts.
Overall, Neogen Corporation's interest coverage ratio has been volatile, reflecting fluctuations in its profitability and financial performance, and indicating the importance of closely monitoring the company's ability to generate sufficient earnings to cover its interest payments.