NeoGenomics Inc (NEO)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,638,040 | 1,641,110 | 1,643,280 | 1,640,340 | 1,681,230 | 1,678,240 | 1,695,110 | 1,709,170 | 1,740,030 | 1,755,580 | 1,792,110 | 1,829,550 | 1,869,780 | 1,906,390 | 1,896,310 | 1,494,410 | 988,331 | 959,428 | 945,485 | 732,247 |
| Total stockholders’ equity | US$ in thousands | 902,339 | 908,210 | 915,884 | 923,410 | 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 |
| Financial leverage ratio | 1.82 | 1.81 | 1.79 | 1.78 | 1.79 | 1.77 | 1.77 | 1.75 | 1.74 | 1.73 | 1.72 | 1.70 | 1.69 | 1.68 | 1.65 | 1.77 | 1.42 | 1.44 | 1.45 | 1.45 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,638,040K ÷ $902,339K
= 1.82
NeoGenomics Inc's financial leverage ratio has been relatively stable over the past few years, ranging between 1.42 and 1.82. The ratio increased gradually from 1.42 as of December 31, 2020, to 1.82 as of December 31, 2024. This indicates that the company has been using more debt to finance its operations and investments compared to its equity during this period.
A financial leverage ratio of 1.82 as of December 31, 2024, suggests that for every dollar of equity, NeoGenomics Inc has $1.82 of debt. While a higher leverage ratio can amplify returns on equity when the company is performing well, it also increases the company's financial risk as higher debt levels could lead to financial distress if the company is unable to meet its debt obligations.
Overall, NeoGenomics Inc's increasing financial leverage ratio highlights the company's growing reliance on debt financing, which could potentially impact its financial stability and flexibility in the future. Investors and stakeholders should pay attention to the company's ability to manage its debt levels effectively as it continues to grow and expand its operations.