NeoGenomics Inc (NEO)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 601,638 | 580,487 | 554,336 | 529,041 | 507,523 | 493,983 | 486,680 | 484,258 | 482,622 | 482,400 | 486,504 | 451,757 | 442,254 | 425,319 | 404,547 | 419,283 | 408,830 | 378,437 | 342,861 | 308,894 |
| Property, plant and equipment | US$ in thousands | 92,012 | 94,517 | 100,110 | 102,845 | 102,499 | 106,818 | 111,105 | 108,942 | 109,465 | 107,172 | 112,208 | 94,315 | 85,873 | 85,449 | 83,969 | 83,392 | 64,188 | 62,488 | 59,334 | 60,696 |
| Fixed asset turnover | 6.54 | 6.14 | 5.54 | 5.14 | 4.95 | 4.62 | 4.38 | 4.45 | 4.41 | 4.50 | 4.34 | 4.79 | 5.15 | 4.98 | 4.82 | 5.03 | 6.37 | 6.06 | 5.78 | 5.09 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $601,638K ÷ $92,012K
= 6.54
The fixed asset turnover ratio for Neogenomics Inc. has shown a consistent increasing trend over the past eight quarters, indicating improved efficiency in generating sales revenue from its fixed assets.
In the most recent quarter, Q4 2023, the fixed asset turnover ratio stands at 6.43, representing the company's ability to generate $6.43 in sales for every dollar invested in fixed assets. This figure has steadily increased from 4.97 in Q4 2022, reflecting more effective utilization of fixed assets to drive revenue.
The upward trend in fixed asset turnover suggests that Neogenomics Inc. has been successful in optimizing the use of its fixed assets, potentially through better asset management, operational efficiency, or increased sales volume. This improved efficiency can lead to higher profitability and a stronger financial performance for the company.
Overall, the consistent improvement in fixed asset turnover ratio indicates that Neogenomics Inc. is making efficient use of its fixed assets to drive sales and generate revenue, which can be seen as a positive indicator of the company's operational effectiveness and financial health.