NeoGenomics Inc (NEO)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -74,058 | -73,159 | -76,897 | -83,292 | -87,685 | -98,927 | -118,492 | -134,448 | -156,087 | -190,599 | -172,963 | -58,923 | -26,856 | 42,264 | 68,818 | -17,022 | -2,131 | -9,077 | -10,063 | 5,927 |
| Interest expense (ttm) | US$ in thousands | 6,617 | 6,674 | 7,872 | 8,730 | 8,512 | 7,691 | 4,990 | 3,392 | 3,226 | 4,073 | 5,230 | 5,206 | 5,082 | 5,569 | 6,731 | 7,377 | 7,019 | 5,205 | 2,950 | 2,706 |
| Interest coverage | -11.19 | -10.96 | -9.77 | -9.54 | -10.30 | -12.86 | -23.75 | -39.64 | -48.38 | -46.80 | -33.07 | -11.32 | -5.28 | 7.59 | 10.22 | -2.31 | -0.30 | -1.74 | -3.41 | 2.19 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-74,058K ÷ $6,617K
= -11.19
The interest coverage ratio measures a company's ability to cover its interest expense with its earnings before interest and taxes (EBIT). A ratio below 1 indicates that the company is not generating enough operating income to meet its interest obligations.
Based on the data provided for NeoGenomics Inc, the interest coverage ratio has been fluctuating significantly over the periods. From March 31, 2020, to June 30, 2021, the interest coverage ratio was mostly negative, indicating that the company's earnings were insufficient to cover its interest expenses during those periods.
However, from June 30, 2021, to September 30, 2023, there was a notable improvement in the interest coverage ratio, reaching double-digit positive values, suggesting that the company's operating income was more than sufficient to cover its interest payments during those quarters.
Subsequently, from December 31, 2023, to December 31, 2024, the interest coverage ratio once again deteriorated and remained negative, indicating a potential strain on NeoGenomics Inc's financial position in meeting its interest obligations with its operating income.
Overall, the fluctuating trend in NeoGenomics Inc's interest coverage ratio highlights the company's changing ability to service its interest payments and suggests the need for close monitoring of its financial performance and debt management practices to ensure sustainable operations.