NeoGenomics Inc (NEO)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -78,726 | -97,097 | -159,342 | -15,075 | -14,056 |
| Revenue | US$ in thousands | 660,566 | 591,643 | 509,728 | 484,329 | 444,448 |
| Pretax margin | -11.92% | -16.41% | -31.26% | -3.11% | -3.16% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-78,726K ÷ $660,566K
= -11.92%
NeoGenomics Inc's pre-tax margin, a key profitability ratio, has shown volatility over the past five years. The margin was negative in all years, indicating that the company's expenses exceeded its revenues before accounting for taxes.
In 2020 and 2021, the pre-tax margin was relatively stable, hovering around -3%. However, in 2022, there was a significant decline to -31.26%, suggesting a significant decrease in profitability. This sharp drop could be attributed to various factors such as rising expenses, declining sales, or one-time charges impacting the bottom line.
Subsequently, there was an improvement in 2023 and 2024, with the pre-tax margin recovering to -16.41% and -11.92% respectively. While the margins remained negative, the upward trend indicates some progress in managing costs or generating higher revenues to mitigate losses.
Overall, NeoGenomics Inc's pre-tax margin performance highlights the importance of closely monitoring expenses and revenue generation strategies to enhance profitability and financial health.