Name: Inventory Turnover

Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.

Interpretation:
• In '2021', NEOG's inventory turnover was 2.52, reflecting efficiency in managing inventory stock. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2021' stood at 3.85.
• In '2022', NEOG's inventory turnover was 2.55, reflecting efficiency in managing inventory stock. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2022' stood at 2.88. Industry average declined by 0.98 from previous year.
• In '2023', NEOG's inventory turnover was 3.25, reflecting efficiency in managing inventory stock. The increase since '2022' reflects strengthening financial performance. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2023' stood at 2.37. Industry average declined by 0.50 from previous year.
• In '2024', NEOG's inventory turnover was 2.85, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: In Vitro & In Vivo Diagnostic Substances in '2024' stood at 3.69. Industry average increased by 1.31 compared to previous year.
Overall, NEOG's inventory turnover has steadily improved over the past 4 years.

Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory

Good Range: Typically 4 to 12 depending on industry.