Neogen Corporation (NEOG)
Quick ratio
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 163,240 | 44,473 | 75,602 | 66,269 | 41,688 |
| Short-term investments | US$ in thousands | 82,329 | 673,156 | 610,970 | 554,808 | 225,836 |
| Receivables | US$ in thousands | 153,253 | 99,674 | 91,823 | 84,681 | 82,582 |
| Total current liabilities | US$ in thousands | 145,472 | 77,844 | 53,599 | 48,489 | 38,251 |
| Quick ratio | 2.74 | 10.50 | 14.52 | 14.56 | 9.15 |
May 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($163,240K
+ $82,329K
+ $153,253K)
÷ $145,472K
= 2.74
The quick ratio of Neogen Corp. has shown a declining trend over the past five years. The ratio has decreased from 9.50 in 2019 to 3.11 in 2023. This indicates a decreasing ability to meet short-term obligations using only the most liquid assets. A quick ratio above 1.0 is generally considered healthy, as it suggests that the company can cover its short-term liabilities with its most liquid assets. The declining trend in Neogen Corp.'s quick ratio may raise concerns about its short-term liquidity position and its ability to meet immediate financial obligations. Further analysis of the company's cash, accounts receivable, and current liabilities may provide more insight into the factors driving this trend.
Peer comparison
May 31, 2023