NeoGenomics Inc (NEO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -78,726 | -87,968 | -144,250 | -8,347 | 4,172 |
| Total assets | US$ in thousands | 1,638,040 | 1,681,230 | 1,740,030 | 1,869,780 | 988,331 |
| ROA | -4.81% | -5.23% | -8.29% | -0.45% | 0.42% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-78,726K ÷ $1,638,040K
= -4.81%
NeoGenomics Inc's return on assets (ROA) has experienced a declining trend over the five years analyzed. The ROA was positive at 0.42% on December 31, 2020, but turned negative in the following years. By December 31, 2021, the ROA had decreased to -0.45%, indicating that the company's assets were no longer generating a positive return. This negative trend continued, with ROA falling further to -8.29% on December 31, 2022, suggesting that the company's assets were not efficiently utilized to generate profits.
Although there was a slight improvement in the ROA in the subsequent years, with -5.23% on December 31, 2023, and -4.81% on December 31, 2024, the values remained negative, indicating that NeoGenomics Inc's assets were still not effectively generating returns for the company. Overall, the declining trend in ROA raises concerns about the company's ability to generate profits from its investments in assets, highlighting the need for strategic management and operational improvements to enhance asset utilization efficiency.