NeoGenomics Inc (NEO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -90,190 | -157,836 | -9,993 | -7,037 | 7,358 |
| Long-term debt | US$ in thousands | 538,198 | 535,322 | 532,483 | 168,120 | 91,829 |
| Total stockholders’ equity | US$ in thousands | 941,537 | 998,023 | 1,108,280 | 694,294 | 507,408 |
| Return on total capital | -6.10% | -10.29% | -0.61% | -0.82% | 1.23% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-90,190K ÷ ($538,198K + $941,537K)
= -6.10%
Neogenomics Inc.'s return on total capital has shown a declining trend over the past five years, ranging from 2.12% in 2019 to -9.98% in 2022. In 2023, the return on total capital further decreased to -6.53%. This indicates that the company is facing challenges in generating returns on the total capital invested in the business. A negative return on total capital suggests that the company's operations are not efficiently utilizing the capital from both debt and equity sources to generate profits. Neogenomics Inc. may need to review its operational efficiency and capital allocation strategies to improve its return on total capital in the future.