NeoGenomics Inc (NEO)
Quick ratio
| 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 | US$ in thousands | 342,488 | 306,239 | 289,074 | 275,609 | 263,180 | 266,126 | 283,637 | 305,896 | 316,827 | 340,565 | 368,796 | 611,970 | 228,713 | 233,233 | 295,281 | 86,254 | 173,016 | 178,891 | 167,436 | 13,195 |
| Short-term investments | US$ in thousands | 72,715 | 96,025 | 120,272 | 142,306 | 174,809 | 177,414 | 182,316 | 175,534 | 198,563 | 202,144 | 202,950 | 190,710 | 67,546 | 50,375 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 131,227 | 132,640 | 125,425 | 118,842 | 119,711 | 111,994 | 111,276 | 110,796 | 112,130 | 104,964 | 106,284 | 102,922 | 106,843 | 103,697 | 87,766 | 99,972 | 94,242 | 91,133 | 89,991 | 82,585 |
| Total current liabilities | US$ in thousands | 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 | 63,904 | 68,907 | 59,162 | 72,703 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($342,488K
+ $72,715K
+ $131,227K)
÷ $96,304K
= 5.67
The quick ratio measures Neogenomics Inc.'s short-term liquidity and ability to meet its immediate liabilities using its most liquid assets. The trend of the quick ratio over the past eight quarters shows a generally decreasing pattern from 7.64 in Q1 2022 to 5.95 in Q4 2023, albeit with some fluctuations.
A quick ratio above 1 indicates the company has enough liquid assets to cover its current liabilities. Neogenomics Inc.'s quick ratio has consistently been well above 1, indicating a strong liquidity position throughout the analyzed period. A higher quick ratio suggests better short-term financial strength and a lower risk of insolvency.
The declining trend in the quick ratio may suggest a decrease in the company's ability to cover its short-term obligations with its liquid assets over time. This could be due to various factors such as changes in the composition of current assets or liabilities, shifts in business operations, or changes in financial management strategies.
It is important for stakeholders to monitor this trend closely to ensure Neogenomics Inc. maintains a healthy liquidity position to meet its short-term obligations effectively. Further analysis and consideration of other financial metrics are recommended to gain a comprehensive understanding of the company's overall financial health.