NeoGenomics Inc (NEO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -107,736 | -157,623 | -118,754 | -13,992 | 13,006 |
| Total assets | US$ in thousands | 1,681,230 | 1,740,030 | 1,869,780 | 988,331 | 709,506 |
| Operating ROA | -6.41% | -9.06% | -6.35% | -1.42% | 1.83% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-107,736K ÷ $1,681,230K
= -6.41%
Neogenomics Inc.'s operating return on assets (ROA) has fluctuated over the past five years, ranging from -8.80% in 2022 to 1.83% in 2019. The negative trend in operating ROA from 2019 to 2022 indicates that the company's operating income generated from its assets has decreased significantly during this period. The sharp decline in 2022 suggests potential operational challenges impacting profitability.
A negative operating ROA implies that the company's operating income is insufficient to cover the asset base, indicating inefficiency in asset utilization or operational performance. In contrast, the positive operating ROA in 2019 signifies that Neogenomics Inc. was able to generate operating income that exceeded its asset base during that year, pointing towards favorable operational efficiency.
It is essential for Neogenomics Inc. to closely monitor and address the factors contributing to the negative trend in operating ROA to improve profitability and enhance asset utilization efficiency. By implementing strategic measures to enhance operational performance and optimize asset utilization, the company may work towards achieving a more favorable operating ROA in the future.