NeoGenomics Inc (NEO)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -78,726 | -87,968 | -144,250 | -8,347 | 4,172 |
| Revenue | US$ in thousands | 660,566 | 591,643 | 509,728 | 484,329 | 444,448 |
| Net profit margin | -11.92% | -14.87% | -28.30% | -1.72% | 0.94% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $-78,726K ÷ $660,566K
= -11.92%
The net profit margin, which measures the percentage of each dollar of revenue that translates into profit after all expenses are deducted, provides insights into the efficiency of NeoGenomics Inc's operations. For the fiscal year ending December 31, 2020, the company reported a net profit margin of 0.94%, indicating that it was able to retain a small portion of its revenue as profit.
However, the trend in subsequent years suggests a decline in profitability. By the end of December 31, 2021, the net profit margin deteriorated to -1.72%, implying that the company operated at a loss. This negative trend continued in the following years, with net profit margins of -28.30%, -14.87%, and -11.92% for the fiscal years ending in 2022, 2023, and 2024, respectively.
The persistent negative net profit margins are concerning as they indicate that NeoGenomics Inc is experiencing challenges in generating profits relative to its revenue. Further analysis of the company's cost structure, revenue sources, and operational efficiencies may be necessary to address these declining margins and improve overall profitability.