NeoGenomics Inc (NEO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 342,488 | 263,180 | 316,827 | 228,713 | 173,016 |
| Short-term investments | US$ in thousands | 72,715 | 174,809 | 198,563 | 67,546 | — |
| Total current liabilities | US$ in thousands | 96,304 | 89,932 | 87,232 | 73,183 | 63,904 |
| Cash ratio | 4.31 | 4.87 | 5.91 | 4.05 | 2.71 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($342,488K
+ $72,715K)
÷ $96,304K
= 4.31
Neogenomics Inc.'s cash ratio has fluctuated over the past five years, with a clear increasing trend from 2019 to 2021, followed by a slight decrease in 2022 and another increase in 2023. The company's cash ratio indicates its ability to cover current liabilities using only cash and cash equivalents, and higher values generally imply stronger liquidity. Neogenomics Inc. has demonstrated a relatively healthy cash position, with the ratio consistently above 1, highlighting the company's ability to meet short-term obligations without relying on other current assets. The upward trend in the cash ratio from 2019 to 2021 may suggest improved cash management or increased cash reserves during that period. However, the slight decrease in 2022 followed by an increase in 2023 indicates some volatility in the company's cash position. It is important for investors and stakeholders to monitor this ratio to assess Neogenomics Inc.'s liquidity and ability to meet its short-term financial obligations in the future.