Neogen Corporation (NEOG)
Cash ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 129,004 | 170,611 | 163,240 | 381,051 | 381,087 |
| Short-term investments | US$ in thousands | 0 | 325 | 82,329 | 336,578 | 305,485 |
| Total current liabilities | US$ in thousands | 174,011 | 154,323 | 145,472 | 77,844 | 53,599 |
| Cash ratio | 0.74 | 1.11 | 1.69 | 9.22 | 12.81 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($129,004K
+ $0K)
÷ $174,011K
= 0.74
The cash ratio of Neogen Corporation over the specified period exhibits a declining trend from May 31, 2021, to May 31, 2025. Specifically, the ratio decreased from 12.81 in 2021 to 9.22 in 2022, indicating a significant, though still substantial, proportion of current liabilities could be covered with cash and cash equivalents at that time. By 2023, the ratio further declined to 1.69, suggesting that the company's available cash and cash equivalents were just under twice its current liabilities, reflecting a noteworthy reduction in cash liquidity.
The downward trajectory continued into 2024, with the cash ratio reaching 1.11, approaching a more conservative liquidity level but still indicating that cash alone could nearly cover current liabilities. By 2025, the ratio diminished further to 0.74, illustrating that cash holdings slightly fell short of covering all current liabilities purely through available cash and cash equivalents.
This consistent decline over the four-year span signals a gradual reduction in Neogen Corporation's immediate liquidity position. While the ratio in 2021 and 2022 indicated a highly conservative liquidity buffer, the trend toward lower ratios suggests a shift toward a more moderate cash liquidity stance, potentially reflecting strategic operational or financing decisions. Despite the decrease, the cash ratio remained positive, meaning the company retained some capacity to meet short-term obligations with cash alone, though with diminishing margin over time.
Peer comparison
May 31, 2025