NeoGenomics Inc (NEO)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -107,736 | -115,545 | -130,860 | -140,668 | -157,623 | -172,807 | -173,010 | -155,675 | -118,754 | -71,648 | -27,266 | -23,806 | -13,992 | -17,210 | -18,220 | 5,165 | 13,006 | 13,506 | 13,767 | 10,083 |
| Total assets | US$ in thousands | 1,681,230 | 1,678,240 | 1,695,110 | 1,709,170 | 1,740,030 | 1,755,580 | 1,792,110 | 1,829,550 | 1,869,780 | 1,906,390 | 1,896,310 | 1,494,410 | 988,331 | 959,428 | 945,485 | 732,247 | 709,506 | 711,155 | 696,667 | 533,343 |
| Operating ROA | -6.41% | -6.88% | -7.72% | -8.23% | -9.06% | -9.84% | -9.65% | -8.51% | -6.35% | -3.76% | -1.44% | -1.59% | -1.42% | -1.79% | -1.93% | 0.71% | 1.83% | 1.90% | 1.98% | 1.89% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-107,736K ÷ $1,681,230K
= -6.41%
Operating return on assets (operating ROA) measures a company's ability to generate operating profits from its assets. Neogenomics Inc.'s operating ROA has shown a declining trend over the past eight quarters. In Q4 2023, the operating ROA stood at -5.75%, representing an improvement from the previous quarter but still indicating that the company generated a negative return from its operating activities relative to its assets. This negative trend is consistent with the company's performance over the preceding quarters, with the lowest operating ROA recorded in Q3 2022 at -9.84%.
The consistent decline in operating ROA may indicate inefficiencies in the company's operations or challenges in effectively utilizing its assets to generate profits. Investors and analysts may view this trend as a cause for concern, as it suggests a potential erosion of profitability and operational performance. Neogenomics Inc. may need to evaluate its business strategies, operational efficiency, and asset utilization to address the declining operating ROA and improve overall financial performance in the future.