Neogen Corporation (NEOG)
Quick ratio
| Nov 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 140,231 | 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 |
| Short-term investments | US$ in thousands | 0 | 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 |
| Receivables | US$ in thousands | 164,086 | 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 |
| Total current liabilities | US$ in thousands | 151,195 | 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 |
| Quick ratio | 2.01 | 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 |
November 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($140,231K
+ $0K
+ $164,086K)
÷ $151,195K
= 2.01
Neogen Corporation's quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio has fluctuated over the past few years, indicating changes in the company's liquidity position.
From November 30, 2019, to August 31, 2021, the quick ratio showed a general increasing trend, reaching a peak of 16.77 on November 30, 2020. This suggests that Neogen had a strong ability to cover its short-term liabilities with its quick assets during this period.
However, starting from November 30, 2021, the quick ratio began to decline steadily, dropping to 2.16 on November 30, 2023, and further decreasing to 2.01 on November 30, 2024. This downward trend indicates a deterioration in Neogen's liquidity position, as the company may face challenges in meeting its short-term obligations with its current liquid assets.
The sharp decline in the quick ratio from May 31, 2022, to August 31, 2022, highlights a potential liquidity issue that should be carefully monitored by investors and stakeholders. Neogen Corporation may need to take proactive measures to improve its liquidity position and ensure it can meet its short-term financial obligations efficiently.
Peer comparison
Nov 30, 2024