NeoGenomics Inc (NEO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -87,968 | -144,250 | -8,347 | 4,172 | 8,006 |
| Total assets | US$ in thousands | 1,681,230 | 1,740,030 | 1,869,780 | 988,331 | 709,506 |
| ROA | -5.23% | -8.29% | -0.45% | 0.42% | 1.13% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-87,968K ÷ $1,681,230K
= -5.23%
Neogenomics Inc.'s return on assets (ROA) has exhibited a declining trend over the past five years. The ROA stood at -5.23% at the end of 2023, which indicates that the company generated a negative return on its assets during that year. This is a deterioration from the -8.29% ROA in 2022, signifying a worsening performance in utilizing its assets efficiently to generate profits.
The negative ROA figures in the past two years suggest that Neogenomics Inc. has been experiencing challenges in generating earnings relative to its total assets. This raises concerns about the company's operational efficiency and profitability.
Comparing the recent ROA values to the positive figures of 0.42% in 2020 and 1.13% in 2019 highlights a significant decline in the company's ability to generate returns on its assets. Investors and stakeholders may view this downward trend as a red flag, prompting the need for further analysis of the company's financial health and operational strategies.