NeoGenomics Inc (NEO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 601,638 | 508,222 | 479,247 | 436,029 | 404,099 |
| Property, plant and equipment | US$ in thousands | 92,012 | 102,499 | 109,465 | 85,873 | 64,188 |
| Fixed asset turnover | 6.54 | 4.96 | 4.38 | 5.08 | 6.30 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $601,638K ÷ $92,012K
= 6.54
Neogenomics Inc.'s fixed asset turnover ratio has exhibited fluctuations over the past five years. The ratio measures how effectively the company is generating revenue from its investment in fixed assets.
In 2023, the fixed asset turnover ratio increased to 6.43, indicating that Neogenomics generated $6.43 in sales for every dollar invested in fixed assets. This represents a significant improvement compared to the prior year, suggesting that the company has become more efficient in utilizing its fixed assets to generate revenue.
The ratio was 4.97 in 2022, 4.42 in 2021, 5.18 in 2020, and 6.37 in 2019. These numbers demonstrate some variability in the company's ability to generate sales from its fixed assets during these years.
Overall, Neogenomics Inc. has shown a generally positive trend in fixed asset turnover, with the ratio fluctuating but generally improving over the past five years. This indicates that the company has been able to make better use of its fixed assets to drive sales and generate revenue efficiently.