Neogen Corporation (NEOG)
Cash ratio
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 343,673 |
| Short-term investments | US$ in thousands | 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 | 277,404 |
| Total current liabilities | US$ in thousands | 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 | 48,489 |
| Cash ratio | 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 | 12.81 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($127,705K
+ $0K)
÷ $141,200K
= 0.90
The cash ratio of Neogen Corporation has been fluctuating over the past few years. It started at a relatively high level of 12.81 on May 31, 2020, indicating that the company had a strong ability to cover its short-term liabilities with its cash and cash equivalents. The ratio increased to 14.97 by November 30, 2020, suggesting an even stronger liquidity position.
However, there was a gradual decline in the cash ratio from February 28, 2021, to August 31, 2022, reaching its lowest point of 8.78 on August 31, 2022. This downward trend indicates that the company's ability to cover its short-term obligations with its available cash was diminishing during this period.
The cash ratio slightly recovered to 1.81 on November 30, 2022, but then significantly dropped to 0.90 by February 28, 2025. A cash ratio below 1 suggests that Neogen Corporation may not have enough liquid assets to meet its short-term liabilities without relying on external sources of funds.
Overall, the declining trend in the cash ratio of Neogen Corporation raises concerns about its liquidity position and ability to meet its short-term obligations solely from its cash reserves. It would be advisable for the company to closely monitor its liquidity management strategies to ensure it maintains a healthy cash position to withstand any unforeseen financial challenges.
Peer comparison
Feb 28, 2025