NeoGenomics Inc (NEO)

Working capital 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
Total current assets	US$ in thousands	596,812	586,950	584,720	584,996	605,291	603,360	622,260	651,100	681,508	709,930	721,795	942,732	448,730	422,375	419,000	215,442	290,738	292,001	276,345	115,945
Total current liabilities	US$ in thousands	96,304	92,926	94,848	86,606	89,932	85,003	82,670	82,070	87,232	92,737	99,131	67,750	73,183	64,612	61,700	67,649	63,904	68,907	59,162	72,703
Working capital turnover		1.20	1.18	1.13	1.06	0.98	0.95	0.90	0.85	0.81	0.78	0.78	0.52	1.18	1.19	1.13	2.84	1.80	1.70	1.58	7.14

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $601,638K ÷ ($596,812K – $96,304K)
= 1.20

Neogenomics Inc.'s working capital turnover has shown a consistent upward trend over the past eight quarters, indicating an improvement in the efficiency of its working capital management. The ratio has steadily increased from 0.85 in Q1 2022 to 1.18 in Q4 2023. This suggests that the company is generating more revenue relative to its working capital, which is a positive indication of its operational performance.

A working capital turnover ratio above 1 indicates that the company is able to generate more sales from its working capital, reflecting efficient utilization of resources. Neogenomics Inc.'s increasing working capital turnover over the quarters demonstrates that the company is managing its current assets and liabilities more effectively, potentially leading to improved cash flow and profitability.

Overall, the rising trend in Neogenomics Inc.'s working capital turnover ratio implies that the company is maintaining a healthy balance between liquidity and operational efficiency, which bodes well for its financial performance in the future.