NeoGenomics Inc (NEO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
NeoGenomics Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to total assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have remained at 0.00 for all reported periods, indicating that the company operates with minimal debt obligations compared to its total resources.
Furthermore, the financial leverage ratio, which measures the extent to which a company relies on debt financing, has shown a slight increase over the years but remains at a moderate level. The ratio was 1.45 in March 2020 and gradually increased to 1.82 by December 2024, indicating a gradual but controlled rise in financial leverage.
Overall, NeoGenomics Inc's solvency ratios suggest that the company is managing its capital structure effectively, maintaining a conservative level of debt and demonstrating stability in its financial position over the years.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to meet its interest obligations, suggesting financial distress.
NeoGenomics Inc's interest coverage ratio fluctuated significantly over the reported periods. In March 2020, the ratio was 2.19, indicating that the company could cover its interest payments 2.19 times with its operating income. However, the ratio turned negative in June 2020 and remained negative until September 2023, indicating that NeoGenomics Inc's operating income was insufficient to cover its interest expenses during these periods.
The trend reversed in June 2021, with a notable improvement in the interest coverage ratio, reaching 10.22. This suggests that the company's operating income significantly exceeded its interest expenses at that time. Despite this improvement, the ratio declined again over subsequent periods, turning negative in December 2021 and remaining so until December 2024.
The persistent negative interest coverage ratios from December 2021 to December 2024 raise concerns about NeoGenomics Inc's ability to meet its interest obligations using its operating income. Investors and creditors may view this trend as a sign of financial weakness and a potentially unsustainable capital structure that warrants further investigation and monitoring.