Neogen Corporation (NEOG)
Quick ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 170,611 | 163,240 | 381,051 | 381,087 | 343,673 |
| Short-term investments | US$ in thousands | 325 | 82,329 | 336,578 | 305,485 | 277,404 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 154,323 | 145,472 | 77,844 | 53,599 | 48,489 |
| Quick ratio | 1.11 | 1.69 | 9.22 | 12.81 | 12.81 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($170,611K
+ $325K
+ $—K)
÷ $154,323K
= 1.11
Neogen Corporation's quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown a declining trend over the years. As of May 31, 2020 and 2021, the quick ratio remained strong at 12.81, indicating a robust ability to cover short-term liabilities with quick assets. However, there was a notable decline to 9.22 by May 31, 2022, and a significant decrease to 1.69 by May 31, 2023, raising concerns about the company's liquidity position. By May 31, 2024, the quick ratio further decreased to 1.11, suggesting a potential strain in meeting short-term obligations with readily available assets. This trend indicates a potential need for the company to efficiently manage its short-term liquidity to avoid financial difficulties in the future.
Peer comparison
May 31, 2024