Neogen Corporation (NEOG)
Quick ratio
| Aug 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 120,477 | 161,437 | 205,765 | 178,832 | 163,240 | 67,134 | 100,000 | 107,098 | 44,473 | 42,879 | 51,119 | 71,283 | 75,602 | 73,482 | 113,867 | 60,947 | 66,269 | 50,774 | 66,414 | 56,289 |
| Short-term investments | US$ in thousands | 0 | 7,010 | 24,501 | 60,424 | 82,329 | 116,080 | 176,338 | 240,613 | 673,156 | 671,120 | 676,260 | 659,194 | 610,970 | 559,730 | 553,796 | 613,078 | 554,808 | 277,149 | 247,191 | 234,727 |
| Receivables | US$ in thousands | 167,639 | 173,592 | 150,498 | 137,669 | 153,253 | 146,393 | 142,711 | 93,112 | 99,674 | 92,978 | 92,498 | 87,291 | 91,823 | 87,241 | 79,931 | 77,685 | 84,681 | 80,692 | 85,377 | 79,112 |
| Total current liabilities | US$ in thousands | 122,689 | 157,844 | 176,612 | 138,130 | 145,472 | 107,155 | 152,558 | 67,004 | 77,844 | 65,710 | 62,673 | 50,762 | 53,599 | 45,942 | 44,587 | 46,442 | 48,489 | 39,135 | 38,791 | 40,427 |
| Quick ratio | 2.35 | 2.17 | 2.16 | 2.73 | 2.74 | 3.08 | 2.75 | 6.58 | 10.50 | 12.28 | 13.08 | 16.11 | 14.52 | 15.68 | 16.77 | 16.19 | 14.56 | 10.44 | 10.29 | 9.16 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($120,477K
+ $0K
+ $167,639K)
÷ $122,689K
= 2.35
The quick ratio of Neogen Corporation has exhibited fluctuations over the recent periods. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. Neogen Corporation's quick ratio has generally trended in a favorable range, ranging from 2.16 to 16.77.
The quick ratio was relatively stable at levels above 2.00 for most of the periods, indicating a strong ability to cover its short-term liabilities with its current assets excluding inventory. The ratios above 2.00 suggest that Neogen Corporation had a comfortable cushion of liquid assets to cover its immediate obligations without relying on selling inventory.
In particular, the quick ratio significantly increased in the later periods, reaching levels as high as 16.77, indicating a substantial increase in the company's liquidity position. This surge in liquidity could be attributed to an increase in cash and equivalents or a reduction in current liabilities, possibly leading to improved financial stability and flexibility.
However, it's important to note that a very high quick ratio, such as those observed in some periods for Neogen Corporation, could also indicate an inefficient use of resources or potential difficulties in effectively utilizing current assets to generate revenue in the short term.
Overall, Neogen Corporation's quick ratio demonstrates a strong liquidity position throughout the periods under review, with the company having the ability to meet its short-term obligations comfortably using its liquid assets. It is essential for stakeholders to monitor future trends in the quick ratio to assess the company's ongoing liquidity position and financial health.
Peer comparison
Aug 31, 2024