Neogen Corporation (NEOG)
Quick ratio
| 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 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 41,688 |
| Short-term investments | US$ in thousands | 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 | 225,836 |
| Receivables | US$ in thousands | 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 | 82,582 |
| Total current liabilities | US$ in thousands | 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 | 38,251 |
| Quick ratio | 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 | 9.15 |
February 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($161,437K
+ $7,010K
+ $173,592K)
÷ $157,844K
= 2.17
The quick ratio of Neogen Corporation has displayed variations over the periods examined. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio greater than 1 indicates that the company can meet its short-term obligations using its liquid assets.
From May 2019 to November 2020, the quick ratio ranged between 9.15 and 16.77, reflecting a consistently strong liquidity position. However, from February 2021 to May 2022, there was a drastic increase in the quick ratio, reaching a peak of 16.68 in August 2022. This substantial surge in liquidity suggests that Neogen Corporation had significantly more liquid assets compared to its short-term obligations during this period.
Subsequently, from August 2022 to August 2023, the quick ratio decreased notably, but it remained above 2, indicating continued strength in the company's liquidity position. The quick ratio in the most recent periods, from August 2023 to February 2024, has stabilized around 2.16 to 2.74, further affirming Neogen Corporation's ability to cover its short-term liabilities with its liquid assets.
Overall, the quick ratio trend of Neogen Corporation reflects a consistently strong liquidity position, with the company maintaining a healthy level of liquid assets to meet its short-term obligations effectively.
Peer comparison
Feb 29, 2024