NeoGenomics Inc (NEO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.28 | 1.31 | 1.34 | 5.02 | 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 |
| Cash ratio | 1.28 | 1.31 | 1.34 | 5.02 | 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 |
From the data provided, we can analyze the liquidity ratios of NeoGenomics Inc over the past few years.
1. Current Ratio: The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. NeoGenomics Inc's current ratio has fluctuated over the years but generally remained healthy and above 1, indicating the company's ability to meet its short-term obligations. The ratio significantly increased in the first quarter of 2021, peaking at 13.91, before stabilizing around 7 from the second quarter of 2021 to the third quarter of 2022. However, there was a notable decrease in the current ratio in the second quarter of 2024, dropping to 2.01, suggesting a potential liquidity challenge during that period.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Similar to the current ratio, NeoGenomics Inc's quick ratio has shown fluctuations but has generally remained above 1, indicating a strong ability to cover short-term liabilities without relying on inventory. The ratio peaked at 11.85 in the first quarter of 2021 and has since stabilized around 5 to 6, showing a healthy liquidity position.
3. Cash Ratio: The cash ratio is the most conservative liquidity ratio as it only considers cash and cash equivalents to cover current liabilities. NeoGenomics Inc's cash ratio followed a similar trend to the quick ratio, remaining above 1, which indicates a strong ability to cover short-term liabilities with cash on hand. The ratio peaked at 11.85 in the first quarter of 2021 and stabilized around 5 to 6 in subsequent periods.
Overall, NeoGenomics Inc has maintained healthy liquidity ratios, with the current, quick, and cash ratios consistently above 1 in most periods. However, the significant drop in the current and quick ratios in the second quarter of 2024 may require further investigation to understand the cause and its implications on the company's liquidity position.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 25.87 | 24.09 | 23.07 | 20.67 | 25.41 | 25.75 | 27.49 | 27.41 | 27.53 | 27.11 | 25.36 | 28.79 | 28.73 | 27.93 | 27.62 | 28.60 | 41.68 | 30.51 | 34.41 | 33.17 |
NeoGenomics Inc has shown a fluctuating trend in its cash conversion cycle over the past few years. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital.
From March 31, 2020, to December 31, 2024, NeoGenomics Inc's cash conversion cycle has shown a general decreasing trend, starting at 33.17 days and dropping to 25.87 days. This indicates that the company has been improving its efficiency in managing its inventory, payables, and receivables over time.
However, during this period, there have been some fluctuations in the cash conversion cycle. For example, there was a significant increase from 30.51 days on September 30, 2020, to 41.68 days on December 31, 2020. This could suggest delays in collecting receivables or managing inventory efficiently during that quarter.
Overall, the decreasing trend in NeoGenomics Inc's cash conversion cycle is a positive sign of the company's ability to efficiently manage its working capital and convert its assets into cash effectively. This trend indicates potential improvements in liquidity and operational efficiency for the company.