NeoGenomics Inc (NEO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 902,339 | 941,537 | 998,023 | 1,108,280 | 694,294 |
| ROE | -8.72% | -9.34% | -14.45% | -0.75% | 0.60% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-78,726K ÷ $902,339K
= -8.72%
The return on equity (ROE) for NeoGenomics Inc has been showing a declining trend over the past five years. In December 31, 2020, the ROE was at a low 0.60%, indicating that the company generated a modest return for its shareholders. However, the ROE turned negative in the subsequent years, reaching -0.75% in December 31, 2021, and further declining to -14.45% in December 31, 2022. This negative trend continued with ROE values of -9.34% in December 31, 2023, and -8.72% in December 31, 2024.
The negative ROE values suggest that NeoGenomics Inc may not be efficiently utilizing its equity to generate profits for its shareholders. A declining ROE could signal various issues such as declining profitability, increasing debt levels, or inefficient management of the company's assets.
It is essential for stakeholders and investors to closely monitor the company's financial performance and strategies to address the declining trend in ROE and work towards improving shareholder value in the long run.