NeoGenomics Inc (NEO)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 6,617 | 6,907 | 1,506 | 5,082 | 7,019 |
| Interest coverage | -11.19 | -13.06 | -104.80 | -1.97 | -1.00 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-74,058K ÷ $6,617K
= -11.19
NeoGenomics Inc's interest coverage ratio has been negative for the past five years, indicating that the company's operating income was insufficient to cover its interest expenses during these periods. This trend is a cause for concern as a negative interest coverage ratio may suggest financial distress and the inability to meet interest obligations.
The interest coverage ratio for NeoGenomics Inc has shown fluctuation over the years, with a significant improvement in 2022 but a subsequent decline in 2023 and 2024. Despite the improvement in 2022, the ratio remains negative, indicating ongoing financial challenges.
It is essential for investors and creditors to closely monitor NeoGenomics Inc's interest coverage ratio in the future to assess the company's ability to generate enough income to cover its interest expenses and meet its debt obligations. A sustained negative interest coverage ratio may raise red flags about the company's financial health and creditworthiness.