NeoGenomics Inc (NEO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 13.85 | 14.37 | 13.26 | 12.71 | 8.76 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.24 | 1.18 | 0.99 | 0.81 | 1.18 |
Activity ratios are used to measure a company's efficiency in managing its assets and resources. Let's analyze the activity ratios of NeoGenomics Inc based on the provided data:
1. Inventory Turnover:
NeoGenomics Inc's inventory turnover has shown an increasing trend over the years, from 8.76 in 2020 to 13.85 in 2024. This indicates that the company is selling its inventory at a faster rate, which is a positive sign of efficient inventory management and liquidity.
2. Receivables Turnover:
The data provided does not include information on NeoGenomics Inc's receivables turnover for the given years. Receivables turnover ratio measures how efficiently a company collects its accounts receivable, and the absence of data limits our ability to analyze this aspect of the company's operations.
3. Payables Turnover:
Similar to receivables turnover, there is no data provided for NeoGenomics Inc's payables turnover for the specified years. Payables turnover ratio assesses how quickly a company pays its suppliers, which is crucial in understanding its working capital management.
4. Working Capital Turnover:
NeoGenomics Inc's working capital turnover has varied over the years, from 0.81 in 2021 to 2.24 in 2024. An increasing trend in working capital turnover signifies that the company is generating more revenue per dollar of working capital, indicating improved operational efficiency and utilization of resources.
In conclusion, the analysis of NeoGenomics Inc's activity ratios suggests that the company has shown positive trends in inventory turnover and working capital turnover, indicating effective management of assets and efficient utilization of resources over the years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 26.35 | 25.41 | 27.53 | 28.73 | 41.68 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
NeoGenomics Inc's activity ratios indicate efficient management of its inventory. The Days of Inventory on Hand (DOH) has decreased from 41.68 days in December 2020 to 26.35 days in December 2024. This suggests that the company is managing its inventory more effectively and turning over its inventory faster.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis, but based on the decreasing trend in inventory days, it can be inferred that NeoGenomics Inc may be collecting payments from customers promptly if DSO remains low. Additionally, if payables days are also decreasing, it could indicate improved negotiation terms with suppliers or faster payment cycles.
Overall, the decreasing trend in Days of Inventory on Hand reflects positively on NeoGenomics Inc's operational efficiency and working capital management, potentially leading to improved cash flows and profitability.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.97 | 2.29 | 5.18 |
| Total asset turnover | 0.40 | 0.35 | 0.29 | 0.26 | 0.45 |
From the provided data, we can analyze NeoGenomics Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios over the years.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company generates revenue from its fixed assets.
- In 2020, NeoGenomics had a Fixed Asset Turnover of 5.18, indicating that the company generated $5.18 in revenue for each dollar invested in fixed assets.
- However, this ratio decreased to 2.29 in 2021, suggesting a decrease in the efficiency of utilizing fixed assets to generate revenue.
- The ratio improved in 2022, jumping back to 4.97, indicating better performance in utilizing fixed assets.
- Data for 2023 and 2024 are not available, so we cannot assess the trend for those years.
2. Total Asset Turnover:
- The Total Asset Turnover ratio measures how efficiently a company utilizes its total assets to generate revenue.
- NeoGenomics had a Total Asset Turnover of 0.45 in 2020, meaning the company generated $0.45 in revenue for each dollar of total assets.
- The ratio declined to 0.26 in 2021, indicating a decrease in efficiency in asset utilization for revenue generation.
- In 2022, the ratio slightly improved to 0.29, but it remained relatively low compared to 2020.
- The data for 2023 and 2024 show further improvements, with Total Asset Turnover reaching 0.35 and 0.40, suggesting better efficiency in utilizing total assets for revenue generation.
In conclusion, NeoGenomics Inc experienced fluctuations in its long-term activity ratios over the years. The company witnessed improvements in both Fixed Asset Turnover and Total Asset Turnover ratios in certain years, indicating better efficiency in utilizing assets to generate revenue. However, these ratios also experienced declines in some years, reflecting challenges in asset efficiency.