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Neogen (Neogen) Interest Coverage

: 0.66 (As of Feb. 2024)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Neogen's Operating Income for the three months ended in Feb. 2024 was $12.0 Mil. Neogen's Interest Expense for the three months ended in Feb. 2024 was $-18.3 Mil. Neogen's interest coverage for the quarter that ended in Feb. 2024 was 0.66. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Neogen's Interest Coverage or its related term are showing as below:

NEOG' s Interest Coverage Range Over the Past 10 Years
Min: 0.67   Med: No Debt   Max: No Debt
Current: 0.95


NEOG's Interest Coverage is ranked worse than
92.45% of 106 companies
in the Medical Diagnostics & Research industry
Industry Median: 12.375 vs NEOG: 0.95

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Neogen Interest Coverage Historical Data

The historical data trend for Neogen's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Neogen Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt No Debt 950.88 814.14 0.67

Neogen Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.90 1.30 1.04 0.80 0.66

Competitive Comparison

For the Diagnostics & Research subindustry, Neogen's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Neogen Interest Coverage Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Neogen's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Neogen's Interest Coverage falls into.



Neogen Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Neogen's Interest Coverage for the fiscal year that ended in May. 2023 is calculated as

Here, for the fiscal year that ended in May. 2023, Neogen's Interest Expense was $-56.0 Mil. Its Operating Income was $37.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $885.4 Mil.

Interest Coverage=-1* Operating Income (A: May. 2023 )/Interest Expense (A: May. 2023 )
=-1*37.515/-55.961
=0.67

Neogen's Interest Coverage for the quarter that ended in Feb. 2024 is calculated as

Here, for the three months ended in Feb. 2024, Neogen's Interest Expense was $-18.3 Mil. Its Operating Income was $12.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $887.7 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*12.023/-18.285
=0.66

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Neogen  (NAS:NEOG) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Neogen Interest Coverage Related Terms

Thank you for viewing the detailed overview of Neogen's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Neogen (Neogen) Business Description

Traded in Other Exchanges
Address
620 Lesher Place, Lansing, MI, USA, 48912
Neogen Corporation, headquartered in Lansing, Michigan, develops, manufactures, and markets various products for food and animal safety. In food safety (70% of post-merger sales), Neogen performs diagnostics to detect unintended substances in food and animal feed, such as pathogens, allergens, and drug residues, for food and feed processing companies. In animal safety (20% of post-merger sales), Neogen sells veterinary instruments, pharmaceuticals, disinfectants, and genomics tests for animals, including cattle, horses, and canines. Sales in the United States account for 60% of total revenue, while international markets, including Canada, Europe, Asia, and Latin America, account for the remaining 40%.
Executives
William T Boehm director
Douglas Edward Jones officer: Vice President, CCO 620 LESHER PLACE, LANSING MI 48912
Jason Warren Lilly officer: Vice President 620 LESHER PLACE, LANSING MI 48912
James P Tobin director 620 LESHER PLACE, LANSING MI 48895
David H. Naemura officer: VP & CFO C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Amy M Rocklin officer: Chief Legal & Reg. Officer 620 LESHER PLACE, LANSING MI 48912
Steven J. Quinlan officer: VP & CFO 620 LESHER PLACE, LANSING MI 48912
Jeffrey D Capello director C/O NEOGEN CORP., 620 LESHER PLACE, LANSING MI 48912
Aashima Gupta director C/O NEOGEN CORPORATION, 620 LESHER PLACE, LANSING MI 48912
John Edward Adent officer: Chief Executive Officer 822 7TH STREET, SUITE 740, GREELEY CO 80631
Darci L Vetter director 620 LESHER PLACE, LANSING MI 48912
Ronald D Green director 620 LESHER PLACE, LANSING MI 48912
James C Borel director 1007 MARKET STREET, WILMINGTON DE 19898
Terri A Morrical officer: General Manager
G Bruce Papesh director 726 APPLEGATE LANE, EAST LANSING MI 48823