NeoGenomics Inc (NEO)
Total 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 |
| Total assets | US$ in thousands | 1,681,230 | 1,740,030 | 1,869,780 | 988,331 | 709,506 |
| Total asset turnover | 0.36 | 0.29 | 0.26 | 0.44 | 0.57 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $601,638K ÷ $1,681,230K
= 0.36
Neogenomics Inc.'s total asset turnover has fluctuated over the past five years. The ratio indicates how efficiently the company is generating sales from its assets. A lower ratio implies that the company is less efficient in utilizing its assets to generate revenue.
In 2023, the total asset turnover ratio increased to 0.35 from 0.29 in 2022, suggesting a slight improvement in asset utilization efficiency. However, the ratio is still lower than the 2020 and 2019 figures, indicating that Neogenomics may have room for further improvement in optimizing its asset productivity.
It is essential for Neogenomics to focus on effectively managing its assets to enhance its revenue generation capabilities. A sustained focus on improving asset turnover can lead to increased profitability and shareholder value in the long run.