NeoGenomics Inc (NEO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -88,164 | -88,337 | -91,335 | -100,832 | -103,052 | -109,325 | -124,640 | -134,448 | -156,087 | -172,807 | -173,010 | -155,675 | -118,754 | -71,648 | -27,266 | -23,806 | -13,992 | -17,210 | -18,220 | 5,165 |
| Total assets | US$ in thousands | 1,638,040 | 1,641,110 | 1,643,280 | 1,640,340 | 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 |
| Operating ROA | -5.38% | -5.38% | -5.56% | -6.15% | -6.13% | -6.51% | -7.35% | -7.87% | -8.97% | -9.84% | -9.65% | -8.51% | -6.35% | -3.76% | -1.44% | -1.59% | -1.42% | -1.79% | -1.93% | 0.71% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-88,164K ÷ $1,638,040K
= -5.38%
Operating return on assets (ROA) measures a company's efficiency in generating operating profits from its assets. For NeoGenomics Inc, the trend in operating ROA has been declining over the years, indicating a decreasing ability to generate profits from its assets.
Starting at 0.71% in March 2020, the operating ROA turned negative in June 2020 and continued to decrease significantly in the following quarters, reaching a low of -9.84% in September 2022. Although there were fluctuations, the overall trend remained negative through December 2024.
The negative operating ROA implies that NeoGenomics Inc is facing challenges in efficiently utilizing its assets to generate operating profits. This trend raises concerns about the company's operational efficiency and may indicate inefficiencies in managing its assets or operating costs that need to be addressed to improve profitability. The company may need to focus on strategies to enhance asset utilization and operational performance to reverse the declining trend in operating ROA.