NeoGenomics Inc (NEO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.66% | 36.97% | 39.03% | 42.63% | 48.71% |
| Operating profit margin | -17.91% | -31.01% | -24.78% | -3.21% | 3.22% |
| Pretax margin | -16.14% | -31.35% | -3.15% | -3.22% | 0.90% |
| Net profit margin | -14.62% | -28.38% | -1.74% | 0.96% | 1.98% |
Neogenomics Inc.'s profitability ratios show a mixed performance over the past five years. The gross profit margin has fluctuated, starting at 48.15% in 2019 and decreasing to 41.34% in 2023. This indicates a decline in the company's ability to generate profit after accounting for the cost of goods sold.
However, the operating profit margin and pretax margin reveal a more concerning trend. Both ratios have been consistently negative since 2020, with the operating profit margin ranging from -3.15% to -30.04% and the pretax margin from -3.11% to -31.26% over the same period. These figures suggest that Neogenomics has been struggling to generate profits from its core operations and before accounting for taxes.
The net profit margin paints a slightly more positive picture, with the company experiencing losses in recent years but at a decreasing rate. The margin has improved from -28.30% in 2022 to -14.87% in 2023, indicating a potential turnaround in profitability.
Overall, Neogenomics Inc. faces challenges in maintaining profitability, as evidenced by the declining gross profit margin and consistently negative operating and pretax margins. Improving these ratios will be essential for the company to enhance its financial performance and ensure sustainable growth in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -6.41% | -9.06% | -6.35% | -1.42% | 1.83% |
| Return on assets (ROA) | -5.23% | -8.29% | -0.45% | 0.42% | 1.13% |
| Return on total capital | -6.10% | -10.29% | -0.61% | -0.82% | 1.23% |
| Return on equity (ROE) | -9.34% | -14.45% | -0.75% | 0.60% | 1.58% |
Neogenomics Inc.'s profitability ratios for the past five years show a mixed performance. The operating return on assets (Operating ROA) has fluctuated, with a significant decrease from 1.83% in 2019 to -5.75% in 2023. This indicates a decline in the company's ability to generate operating income from its assets over the years.
The return on assets (ROA) has also shown a downward trend, moving from a positive 1.13% in 2019 to a negative 5.23% in 2023. This suggests that Neogenomics Inc. has been less effective in generating profits from its total assets during the analyzed period.
Similarly, the return on total capital and return on equity (ROE) ratios have experienced a decline over the years. The return on equity has shown a negative trend, indicating a decrease in the profitability of the company for its shareholders.
Overall, the profitability ratios of Neogenomics Inc. have shown a decreasing trend, which may raise concerns about the company's ability to efficiently utilize its assets and generate returns for its investors.