Neogen Corporation (NEOG)
Cash ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 170,611 | 163,240 | 381,051 | 381,087 | 343,673 |
| Short-term investments | US$ in thousands | 325 | 82,329 | 336,578 | 305,485 | 277,404 |
| Total current liabilities | US$ in thousands | 154,323 | 145,472 | 77,844 | 53,599 | 48,489 |
| Cash ratio | 1.11 | 1.69 | 9.22 | 12.81 | 12.81 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($170,611K
+ $325K)
÷ $154,323K
= 1.11
The cash ratio for Neogen Corporation has shown a gradual decrease over the years from 12.81 in May 31, 2020 and 2021 to 1.11 in May 31, 2024. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio reflects a stronger liquidity position and ability to meet short-term obligations without relying on external sources of funding. The declining trend observed in Neogen Corporation's cash ratio suggests a potential strain on its liquidity position over time, which may warrant further investigation into the company's cash management practices and financial health.
Peer comparison
May 31, 2024