Neogen Corporation (NEOG)
Current ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 576,937 | 551,713 | 570,447 | 540,650 | 589,233 | 602,471 | 624,373 | 583,793 | 585,931 | 555,371 | 643,333 | 607,907 | 626,798 | 608,326 | 609,950 | 609,124 | 591,451 | 555,304 | 578,426 | 556,699 |
| Total current liabilities | US$ in thousands | 174,011 | 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 |
| Current ratio | 3.32 | 3.91 | 3.77 | 4.41 | 3.82 | 3.82 | 3.54 | 4.23 | 4.03 | 5.18 | 4.22 | 9.07 | 8.05 | 9.45 | 9.93 | 12.00 | 11.03 | 12.09 | 12.97 | 11.99 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $576,937K ÷ $174,011K
= 3.32
The Neogen Corporation's current ratio over the period from August 2020 to May 2025 indicates a significant decline in liquidity. Initially, the current ratio was notably high, reaching a peak of 12.97 in November 2020. This suggests that at that time, the company's current assets were almost 13 times its current liabilities, reflecting a substantial liquidity cushion.
From late 2020 through mid-2021, the current ratio remained relatively stable and high, generally above 11, with slight fluctuations. However, starting from late 2021, a downward trend is observable. By November 2022, the current ratio had decreased sharply to 4.22, and continued to decline through 2023, reaching a low of 3.54 in November 2023.
In 2024, the ratio experienced some stabilization but remained comparatively low, fluctuating around the low threes, with values such as 3.82 in February and May, and slightly higher at 4.41 in August 2024 before settling at 3.77 in November 2024. The forecasted ratios into early 2025 show a slight recovery to approximately 3.91 in February and a dip to 3.32 in May.
Overall, the trend reflects a substantial reduction in liquidity margins over the period, transitioning from an extremely high current ratio indicative of very conservative liquidity management to a much lower, yet still above 1, ratio. This shift may signal a change in the company's operational focus, asset composition, or liquidity management strategies, potentially implying increased utilization of current assets or a reduction in current liabilities.
Peer comparison
May 31, 2025