NeoGenomics Inc (NEO)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 596,019 | 590,241 | 584,203 | 573,896 | 596,812 | 586,950 | 584,720 | 584,996 | 605,291 | 603,360 | 622,260 | 651,100 | 681,508 | 709,930 | 721,795 | 942,732 | 448,730 | 422,375 | 419,000 | 215,442 |
| Total current liabilities | US$ in thousands | 301,241 | 296,406 | 289,959 | 76,710 | 96,304 | 92,926 | 94,848 | 86,606 | 89,932 | 85,003 | 82,670 | 82,070 | 87,232 | 92,737 | 99,131 | 67,750 | 73,183 | 64,612 | 61,700 | 67,649 |
| Current ratio | 1.98 | 1.99 | 2.01 | 7.48 | 6.20 | 6.32 | 6.16 | 6.75 | 6.73 | 7.10 | 7.53 | 7.93 | 7.81 | 7.66 | 7.28 | 13.91 | 6.13 | 6.54 | 6.79 | 3.18 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $596,019K ÷ $301,241K
= 1.98
Based on the data provided, NeoGenomics Inc's current ratio has exhibited significant fluctuations over the reported periods. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
The current ratio was consistently strong from March 31, 2020, to June 30, 2022, ranging from 3.18 to 7.93, indicating a healthy liquidity position. However, there was a notable decline in the ratio from June 30, 2022, to December 31, 2024, with the ratio dropping to as low as 1.98.
A current ratio above 1 is typically considered favorable, as it suggests that a company has more current assets than current liabilities. However, a current ratio that is too high may indicate an inefficient use of assets or an accumulation of excess inventory.
The declining trend in NeoGenomics Inc's current ratio from June 30, 2022, onwards may raise concerns about its short-term liquidity and ability to meet its immediate financial obligations. It would be advisable for stakeholders to further investigate the reasons behind this decline and assess the company's overall financial health and risk management strategies.