Neogen Corporation (NEOG)
Cash ratio
| Nov 30, 2024 | Aug 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 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 140,231 | 120,477 | 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 |
| Short-term investments | US$ in thousands | 0 | 0 | 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 |
| Total current liabilities | US$ in thousands | 151,195 | 122,689 | 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 |
| Cash ratio | 0.93 | 0.98 | 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 |
November 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($140,231K
+ $0K)
÷ $151,195K
= 0.93
Neogen Corporation's cash ratio has displayed fluctuations over the period from November 30, 2019, to November 30, 2024. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, stood at 8.08 on November 30, 2019. The ratio increased steadily over the next few quarters, reaching a peak of 14.97 on November 30, 2020, indicating a significant improvement in Neogen's liquidity position.
However, from February 28, 2021, onwards, the cash ratio started to decline, dropping to 1.07 on February 29, 2024. This downward trend suggests a potential decrease in Neogen's ability to cover its short-term obligations with its cash holdings during this period. By August 31, 2024, the cash ratio had fallen further to 0.98.
The decreasing trend in Neogen Corporation's cash ratio from 2021 to 2024 raises concerns about the company's liquidity and ability to meet its short-term obligations. It may be advisable for Neogen to closely monitor and manage its cash position to ensure it maintains a healthy cash ratio in the coming quarters.
Peer comparison
Nov 30, 2024