NeoGenomics Inc (NEO)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -87,968 | -96,329 | -114,665 | -125,637 | -144,250 | -163,322 | -146,818 | -35,642 | -8,348 | 48,828 | 71,733 | -10,964 | 4,172 | -4,949 | -5,363 | 3,452 | 8,006 | 2,063 | 1,943 | -428 |
| Total stockholders’ equity | US$ in thousands | 941,537 | 947,428 | 956,192 | 974,462 | 998,023 | 1,012,990 | 1,043,520 | 1,075,000 | 1,108,280 | 1,137,240 | 1,148,360 | 843,714 | 694,294 | 666,363 | 654,229 | 505,043 | 507,408 | 497,007 | 489,734 | 323,848 |
| ROE | -9.34% | -10.17% | -11.99% | -12.89% | -14.45% | -16.12% | -14.07% | -3.32% | -0.75% | 4.29% | 6.25% | -1.30% | 0.60% | -0.74% | -0.82% | 0.68% | 1.58% | 0.42% | 0.40% | -0.13% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-87,968K ÷ $941,537K
= -9.34%
Neogenomics Inc.'s return on equity (ROE) has been on a downward trend over the past eight quarters, as indicated by negative ROE values. The ROE decreased from -3.32% in Q1 2022 to -12.89% in Q1 2023. This downward trend suggests that the company's profitability in relation to its equity has deteriorated over time.
The decreasing trend in ROE could be concerning for stakeholders as it indicates that the company is not efficiently generating profits from its shareholders' equity. A negative ROE implies that the company is not generating enough profits to cover its equity capital, resulting in a loss on shareholders' investment.
It is essential for Neogenomics Inc. to evaluate and address the underlying factors contributing to the declining ROE, such as inefficiencies in operations, high debt levels, or declining profitability. Management should focus on improving operational efficiency, reducing costs, and enhancing revenue generation to reverse the negative trend in ROE and enhance shareholder value in the long run.