Neogen Corporation (NEOG)
Cash ratio
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 163,240 | 44,473 | 75,602 | 66,269 | 41,688 |
| Short-term investments | US$ in thousands | 82,329 | 673,156 | 610,970 | 554,808 | 225,836 |
| Total current liabilities | US$ in thousands | 145,472 | 77,844 | 53,599 | 48,489 | 38,251 |
| Cash ratio | 1.69 | 9.22 | 12.81 | 12.81 | 6.99 |
May 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($163,240K
+ $82,329K)
÷ $145,472K
= 1.69
The cash ratio of Neogen Corp. has exhibited a declining trend over the last five years. In 2023, the cash ratio stood at 2.05, a substantial decrease from 5.20 in 2022 and a substantial decline from 7.44 in 2021. This suggests a potential deterioration in the company's ability to meet its short-term obligations solely through its cash and cash equivalents. Further investigation into the company's liquidity management and cash position is recommended to understand the reasons for this declining trend and to assess the potential impact on the company's financial stability.
Peer comparison
May 31, 2023