Neogen Corporation (NEOG)
Quick ratio
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 127,705 | 140,231 | 120,477 | 170,611 | 161,437 | 205,765 | 178,832 | 163,240 | 67,134 | 100,000 | 347,711 | 381,051 | 378,439 | 389,249 | 400,880 | 381,087 | 353,347 | 390,765 | 367,486 | 343,673 |
| Short-term investments | US$ in thousands | 0 | 0 | 317 | 325 | 7,010 | 24,501 | 60,424 | 82,329 | 116,080 | 176,338 | 240,613 | 336,578 | 335,560 | 338,130 | 329,597 | 305,485 | 279,865 | 276,898 | 306,539 | 277,404 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 48,489 |
| Quick ratio | 0.90 | 0.93 | 0.98 | 1.11 | 1.07 | 1.30 | 1.73 | 1.69 | 1.71 | 1.81 | 8.78 | 9.22 | 11.09 | 11.84 | 14.39 | 12.81 | 13.78 | 14.97 | 14.51 | 12.81 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($127,705K
+ $0K
+ $—K)
÷ $141,200K
= 0.90
Neogen Corporation's quick ratio, which measures the company's ability to meet short-term obligations with its most liquid assets, has shown fluctuations over the past few years. Starting from May 31, 2020, the quick ratio was at a healthy level of 12.81, indicating a strong ability to cover its short-term liabilities with liquid assets.
The quick ratio continued to improve through August 31, 2020, reaching 14.51, and further increased to 14.97 by November 30, 2020, reflecting an even more robust liquidity position. However, there was a slight decline by February 28, 2021, with a quick ratio of 13.78.
The trend continued to fluctuate in the following periods, with the quick ratio dipping to 9.22 by May 31, 2022, and further declining to 0.90 by February 28, 2025. This downward trend raises concerns regarding Neogen Corporation's ability to meet its short-term obligations with its current liquid assets.
In summary, Neogen Corporation experienced fluctuations in its quick ratio over the analyzed period, indicating varying levels of liquidity and ability to cover short-term obligations. Investors and stakeholders may need to monitor the company's liquidity closely to assess its financial health and ability to meet obligations in the short run.
Peer comparison
Feb 28, 2025