NeoGenomics Inc (NEO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -74,058 | -90,190 | -157,836 | -9,993 | -7,037 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 902,339 | 941,537 | 998,023 | 1,108,280 | 694,294 |
| Return on total capital | -8.21% | -9.58% | -15.81% | -0.90% | -1.01% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-74,058K ÷ ($—K + $902,339K)
= -8.21%
NeoGenomics Inc's return on total capital has shown a consistent decline over the years, decreasing from -1.01% as of December 31, 2020, to -8.21% as of December 31, 2024. This downward trend indicates that the company's ability to generate profits from its total capital employed has weakened over the period under review. The negative values for return on total capital suggest that the company may be experiencing challenges in efficiently utilizing its capital to generate sufficient returns for its investors. It is important for NeoGenomics Inc to closely evaluate its capital allocation strategies and operational efficiency to improve its return on total capital in the future.