NeoGenomics Inc (NEO)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 6,907 | -7,691 | -4,712 | -1,262 | 1,506 | 4,073 | 5,230 | 5,206 | 5,082 | 5,569 | 6,731 | 7,377 | 7,019 | 5,205 | 2,950 | 2,706 | 3,713 | 4,797 | 6,467 | 6,570 |
| Interest coverage | -13.06 | — | — | — | -104.80 | -42.71 | -29.89 | -8.05 | -1.97 | 7.59 | 10.22 | -2.97 | -1.00 | -2.69 | -5.07 | 1.81 | 1.98 | 1.54 | 1.19 | 0.74 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-90,190K ÷ $6,907K
= -13.06
To assess Neogenomics Inc.'s interest coverage, we analyzed the data provided. The interest coverage ratio measures a company's ability to meet interest obligations on its outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.
Based on the available data for the past eight quarters, Neogenomics Inc. had negative interest coverage ratios in the last four quarters of 2022 and maintained a negative trend in Q1 2023. The significant negative ratios in Q4 2022 and preceding quarters (-101.66, -42.43, -33.08, -29.90) highlight a concerning situation where the company's earnings were insufficient to cover its interest expenses.
The negative interest coverage ratios may suggest financial distress for Neogenomics Inc., as the company struggled to generate enough earnings to meet its interest obligations during this period. It implies that the company's profit levels were insufficient to cover its interest expenses, potentially signaling liquidity and solvency issues.
Further analysis and monitoring of Neogenomics Inc.'s financial performance and management of its debt obligations are recommended to assess the company's ability to improve its interest coverage ratio and ensure financial stability in the future.