Neogen Corporation (NEOG)
Current ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 589,233 | 585,931 | 626,798 | 591,451 | 537,406 |
| Total current liabilities | US$ in thousands | 154,323 | 145,472 | 77,844 | 53,599 | 48,489 |
| Current ratio | 3.82 | 4.03 | 8.05 | 11.03 | 11.08 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $589,233K ÷ $154,323K
= 3.82
The current ratio of Neogen Corporation has shown a decreasing trend over the years, declining from 11.08 as of May 31, 2020, to 3.82 as of May 31, 2024. This indicates a reduction in the company's ability to cover its short-term obligations with its current assets. While a higher current ratio is generally preferred, the substantial decrease raises concerns about Neogen Corporation's liquidity position and ability to meet its immediate financial obligations. Further analysis of the company's current assets and liabilities is recommended to understand the factors contributing to this significant decline in the current ratio.
Peer comparison
May 31, 2024