Neogen Corporation (NEOG)
Cash ratio
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 129,004 | 127,705 | 140,231 | 120,477 | 170,611 | 161,437 | 205,765 | 178,832 | 163,240 | 67,134 | 100,000 | 347,711 | 381,051 | 378,439 | 389,249 | 400,880 | 381,087 | 353,347 | 390,765 | 367,486 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 317 | 325 | 7,010 | 24,501 | 60,424 | 82,329 | 116,080 | 176,338 | 240,613 | 336,578 | 335,560 | 338,130 | 329,597 | 305,485 | 279,865 | 276,898 | 306,539 |
| Total current liabilities | US$ in thousands | 174,011 | 141,200 | 151,195 | 122,689 | 154,323 | 157,844 | 176,612 | 138,130 | 145,472 | 107,155 | 152,558 | 67,004 | 77,844 | 64,403 | 61,419 | 50,762 | 53,599 | 45,942 | 44,587 | 46,442 |
| Cash ratio | 0.74 | 0.90 | 0.93 | 0.98 | 1.11 | 1.07 | 1.30 | 1.73 | 1.69 | 1.71 | 1.81 | 8.78 | 9.22 | 11.09 | 11.84 | 14.39 | 12.81 | 13.78 | 14.97 | 14.51 |
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 analyzed period demonstrates a notable decline from August 31, 2020, through May 31, 2025. Initially, the ratio was considerably high at approximately 14.51 on August 31, 2020, indicating a strong liquidity position characterized by ample cash holdings relative to current liabilities. The ratio experienced slight fluctuations, reaching a peak of 14.97 on November 30, 2020, and generally maintaining levels above 12 during the subsequent periods, including notable readings of 13.78 on February 28, 2021, and 14.39 on August 31, 2021.
However, starting in late 2021, a consistent downward trend becomes apparent. The ratio declined steadily, falling below 10 by May 31, 2022, and further diminishing to approximately 8.78 on August 31, 2022. The decline accelerated markedly by late 2022 and early 2023, with the ratio plummeting to 1.81 on November 30, 2022, and continuing to decrease to approximately 1.07 on February 29, 2024. For the remainder of the period, the ratio stabilizes slightly above 1, with values such as 1.30 on November 30, 2023, and fluctuating modestly around 0.9 to 1.11 from early 2024 through May 2025.
Overall, the data indicates that Neogen’s cash ratio has contracted substantially over time, shifting from a very high level—highlighting abundant liquidity—to a much lower level nearing or slightly above 1. This significant decline suggests a transition from a conservative liquidity stance toward a more balanced or potentially leaner liquidity profile, possibly reflecting strategic changes in working capital management, investment practices, or shifts in liquidity management policies. The persistently low cash ratio in recent periods raises considerations regarding the company's ability to meet short-term obligations using cash alone, emphasizing the importance of examining other liquidity and current asset measures for a comprehensive assessment.
Peer comparison
May 31, 2025