NeoGenomics Inc (NEO)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 660,566 | 591,643 | 509,728 | 484,329 | 444,448 |
| Property, plant and equipment | US$ in thousands | — | — | 102,499 | 211,662 | 85,873 |
| Fixed asset turnover | — | — | 4.97 | 2.29 | 5.18 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $660,566K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. NeoGenomics Inc's fixed asset turnover has fluctuated over the years.
In 2020, the ratio was 5.18, indicating that for every dollar invested in fixed assets, the company generated $5.18 in revenue. This suggests that NeoGenomics was effectively utilizing its fixed assets to generate sales.
However, in 2021, the ratio dropped to 2.29, indicating a decrease in efficiency in utilizing fixed assets to generate revenue. This may signal potential issues with asset utilization or a decrease in revenue generation relative to fixed asset investment.
By 2022, the ratio improved significantly to 4.97, showing that the company had increased its efficiency in generating revenue from fixed assets. This could indicate improved operational performance or better asset management strategies.
The data for 2023 and 2024 is not available (denoted by "—"), making it difficult to assess NeoGenomics' fixed asset turnover for those years. It is important for the company to maintain or improve its fixed asset turnover ratio to ensure efficient asset utilization and sustainable revenue generation.