NeoGenomics Inc (NEO)

Neogenomics Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.

The debt-to-assets ratio has shown a gradual increase over the last five years, reaching 0.32 in 2023. This indicates that 32% of the company's assets are funded by debt, leaving the rest financed by equity. The trend suggests a moderate reliance on debt to support the company's asset base.

The debt-to-capital ratio has followed a similar pattern, increasing to 0.36 in 2023. This metric reveals that 36% of the company's capital structure is composed of debt, while the remaining 64% is derived from equity. The rising trend indicates a growing proportion of debt relative to the overall capital structure.

The debt-to-equity ratio has also exhibited an upward trajectory, reaching 0.57 in 2023. This ratio signifies that for every dollar of equity, the company has $0.57 in debt. The escalating trend highlights an increasing leverage position, potentially indicating higher financial risk.

The financial leverage ratio, which measures the company's total assets relative to shareholders' equity, has steadily increased to 1.79 in 2023. This implies that the company's assets are financed through a combination of equity and debt, with higher leverage than in previous years.

Overall, the solvency ratios of Neogenomics Inc. suggest a consistent trend of relying more on debt to finance its operations and growth. While moderate leverage can be beneficial for maximizing shareholder returns, investors and stakeholders should carefully monitor the company's debt levels to ensure sustainability and risk management.

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Coverage ratios

Neogenomics Inc.'s interest coverage ratio has shown a mixed trend over the past five years. In 2019, the company had an interest coverage ratio of 3.50, indicating that it was generating enough operating income to cover its interest expenses. However, this trend reversed in subsequent years.

In 2020, the interest coverage ratio plummeted to -1.99, implying that the company's operating income was insufficient to cover its interest expenses, potentially signaling financial distress. This negative trend continued in 2021, with the interest coverage ratio falling further to -23.37, exacerbating the company's financial challenges.

The most recent data available shows that Neogenomics Inc. did not report an interest coverage ratio in 2022 and 2023. The lack of a reported interest coverage ratio could indicate a significant deterioration in the company's financial performance or a change in its financing structure.

Overall, the declining trend in Neogenomics Inc.'s interest coverage ratio over the past five years, culminating in missing data in the most recent years, raises concerns about the company's ability to meet its interest payment obligations from its operating income. This situation underscores the importance of closely monitoring the company's financial health and its ability to manage its debt obligations effectively.