Neogen Corporation (NEOG)
Cash ratio
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 161,437 | 205,765 | 178,832 | 163,240 | 67,134 | 100,000 | 107,098 | 44,473 | 42,879 | 51,119 | 71,283 | 75,602 | 73,482 | 113,867 | 60,947 | 66,269 | 50,774 | 66,414 | 56,289 | 41,688 |
| Short-term investments | US$ in thousands | 7,010 | 24,501 | 60,424 | 82,329 | 116,080 | 176,338 | 240,613 | 673,156 | 671,120 | 676,260 | 659,194 | 610,970 | 559,730 | 553,796 | 613,078 | 554,808 | 277,149 | 247,191 | 234,727 | 225,836 |
| Total current liabilities | US$ in thousands | 157,844 | 176,612 | 138,130 | 145,472 | 107,155 | 152,558 | 67,004 | 77,844 | 65,710 | 62,673 | 50,762 | 53,599 | 45,942 | 44,587 | 46,442 | 48,489 | 39,135 | 38,791 | 40,427 | 38,251 |
| Cash ratio | 1.07 | 1.30 | 1.73 | 1.69 | 1.71 | 1.81 | 5.19 | 9.22 | 10.87 | 11.61 | 14.39 | 12.81 | 13.78 | 14.97 | 14.51 | 12.81 | 8.38 | 8.08 | 7.20 | 6.99 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($161,437K
+ $7,010K)
÷ $157,844K
= 1.07
The cash ratio for Neogen Corporation has shown fluctuations over the past few periods, ranging from 1.07 to 14.97. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover immediate obligations.
In the most recent period, the cash ratio was 1.07, which indicates that the company had just enough cash and cash equivalents to cover its short-term liabilities. This is lower compared to the previous period where the cash ratio was 1.30, suggesting a slight decrease in liquidity.
On the other hand, there were periods where the cash ratio was significantly higher, such as in August 2022 and May 2022 when the ratios were 5.19 and 9.22 respectively. This indicates a strong liquidity position during those periods, with a considerable amount of cash available to cover short-term obligations.
Overall, the trend in the cash ratio fluctuates, indicating varying levels of liquidity for Neogen Corporation. It is essential for the company to maintain an adequate level of cash reserves to meet its short-term obligations and ensure financial stability.
Peer comparison
Feb 29, 2024