NeoGenomics Inc (NEO)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 4.55 | 4.24 | 4.67 | 1.59 |
| Quick ratio | 5.67 | 5.76 | 5.64 | 6.20 | 6.20 | 6.54 | 6.98 | 7.22 | 7.19 | 6.98 | 6.84 | 13.37 | 5.51 | 5.99 | 6.21 | 2.75 | 4.18 | 3.92 | 4.35 | 1.32 |
| Cash ratio | 4.31 | 4.33 | 4.32 | 4.83 | 4.87 | 5.22 | 5.64 | 5.87 | 5.91 | 5.85 | 5.77 | 11.85 | 4.05 | 4.39 | 4.79 | 1.28 | 2.71 | 2.60 | 2.83 | 0.18 |
Neogenomics Inc. has demonstrated consistently strong liquidity ratios over the past eight quarters. The current ratio, which indicates the company's ability to cover short-term obligations with its current assets, has ranged from 6.16 to 6.75. This suggests that the company has a healthy buffer to meet its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has ranged from 5.90 to 6.47. This indicates that even when inventory is excluded, Neogenomics Inc. still maintains a strong ability to settle short-term obligations.
The cash ratio, which reflects the company's ability to cover current liabilities with its cash and cash equivalents, has varied from 4.58 to 5.10. This ratio indicates that the company has sufficient liquid resources to meet its immediate payment obligations, although it is lower than the current and quick ratios.
Overall, Neogenomics Inc. has demonstrated solid liquidity positions across all three ratios, indicating a strong capacity to meet its short-term financial commitments.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 81.58 | 87.17 | 86.31 | 82.92 | 88.46 | 87.35 | 86.05 | 85.52 | 88.11 | 74.56 | 78.52 | 84.99 | 91.68 | 91.39 | 81.27 | 86.88 | 79.52 | 81.86 | 86.79 | 89.03 |
The cash conversion cycle of Neogenomics Inc. has shown some fluctuations over the past eight quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle decreased to 84.98 days compared to the previous quarter. This decrease indicates that the company was able to manage its inventory and accounts receivable more efficiently, resulting in a shorter time to convert investments into cash.
Similarly, in Q1 2023, the company saw a relatively low cash conversion cycle of 83.81 days, indicating efficient management of working capital. However, this trend was followed by a slight increase in Q2 2023 and Q3 2023.
Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), there was a slight improvement from 89.99 days to 84.98 days. This suggests that the company has made progress in managing its working capital over the year.
Overall, Neogenomics Inc. has shown some variability in its cash conversion cycle, with fluctuations observed in different quarters. It is essential for the company to continue focusing on efficient inventory management and accounts receivable collection to shorten the cash conversion cycle and improve cash flow management.