NeoGenomics Inc (NEO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -90,190 | -115,026 | -130,220 | -141,163 | -157,836 | -173,949 | -156,338 | -41,893 | -9,994 | 42,264 | 68,818 | -21,928 | -7,037 | -13,983 | -14,969 | 4,909 | 7,358 | 7,409 | 7,665 | 4,865 |
| Long-term debt | US$ in thousands | 538,198 | 537,475 | 536,755 | 536,037 | 535,322 | 534,609 | 533,898 | 533,189 | 532,483 | 531,779 | 531,077 | 530,378 | 168,120 | 166,440 | 164,544 | 90,605 | 91,829 | 93,027 | 94,250 | 90,995 |
| 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 |
| Return on total capital | -6.10% | -7.75% | -8.72% | -9.35% | -10.29% | -11.24% | -9.91% | -2.60% | -0.61% | 2.53% | 4.10% | -1.60% | -0.82% | -1.68% | -1.83% | 0.82% | 1.23% | 1.26% | 1.31% | 1.17% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-90,190K ÷ ($538,198K + $941,537K)
= -6.10%
The return on total capital for Neogenomics Inc. has shown a declining trend over the past eight quarters, indicating a consistent decrease in the company's ability to generate returns on the total capital employed in its operations. The range of return on total capital has fluctuated between -6.53% to -11.17% during this period.
The negative values indicate that the company's operations have not been generating sufficient returns to cover the total capital invested in the business. This could be a cause for concern as it suggests inefficiencies in the company's capital allocation or operational performance.
Further analysis would be required to understand the specific reasons behind the declining trend and to identify potential areas for improvement in order to enhance the company's return on total capital in the future.