Neogen Corporation (NEOG)
Current ratio
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 585,931 | 626,798 | 591,451 | 537,406 | 449,529 |
| Total current liabilities | US$ in thousands | 145,472 | 77,844 | 53,599 | 48,489 | 38,251 |
| Current ratio | 4.03 | 8.05 | 11.03 | 11.08 | 11.75 |
May 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $585,931K ÷ $145,472K
= 4.03
The current ratio of Neogen Corp. has exhibited a decreasing trend over the past five years, declining from 11.75 in 2019 to 4.03 in 2023. This indicates a notable decrease in the company's ability to meet its short-term obligations using its current assets. The current ratio exceeding 1 suggests that Neogen Corp. has had sufficient current assets to cover its current liabilities in each year. However, the declining trend may raise concerns about the company's liquidity management and ability to efficiently manage its short-term financial obligations. Further analysis of the company's current assets and liabilities is warranted to understand the factors driving this trend and to assess the potential impact on Neogen Corp.'s overall financial health.
Peer comparison
May 31, 2023