NeoGenomics Inc (NEO)

Solvency ratios

	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
Debt-to-assets ratio	0.32	0.32	0.32	0.31	0.31	0.30	0.30	0.29	0.28	0.28	0.28	0.35	0.17	0.17	0.17	0.12	0.13	0.13	0.14	0.17
Debt-to-capital ratio	0.36	0.36	0.36	0.35	0.35	0.35	0.34	0.33	0.32	0.32	0.32	0.39	0.19	0.20	0.20	0.15	0.15	0.16	0.16	0.22
Debt-to-equity ratio	0.57	0.57	0.56	0.55	0.54	0.53	0.51	0.50	0.48	0.47	0.46	0.63	0.24	0.25	0.25	0.18	0.18	0.19	0.19	0.28
Financial leverage ratio	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	1.40	1.43	1.42	1.65

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of Neogenomics Inc. over the last eight quarters, we can observe the following trends:

1. Debt-to-assets ratio has remained relatively stable around 0.31-0.32, indicating that Neogenomics Inc. finances approximately 31-32% of its assets through debt. This suggests a conservative approach to leverage, as a lower ratio indicates less reliance on debt financing.

2. Debt-to-capital ratio has followed a similar trend, hovering around 0.35-0.36 over the same period. This ratio represents the proportion of the company's capital structure that is funded by debt. Neogenomics Inc. has maintained a consistent level of debt relative to its total capital.

3. Debt-to-equity ratio has shown a gradual increase from 0.50 in Q1 2022 to 0.57 in Q4 2023. This indicates that the company's reliance on debt relative to shareholders' equity has been growing steadily. While this ratio is still within a reasonable range, the upward trend warrants further monitoring to ensure the company's solvency is not compromised.

4. The financial leverage ratio has also been increasing steadily from 1.70 in Q1 2022 to 1.79 in Q4 2023. This ratio measures the extent to which Neogenomics Inc. relies on debt to finance its operations. The rising trend suggests that the company's financial leverage has been escalating, signaling a potential increase in financial risk.

Overall, Neogenomics Inc. has maintained relatively stable debt levels in relation to its assets and capital, but there are concerns regarding the increasing reliance on debt in relation to equity and the growing financial leverage ratio. It is essential for the company to carefully manage its debt levels to ensure sustained solvency and financial stability in the long run.

Coverage ratios

	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
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

Based on the data provided for Neogenomics Inc., the interest coverage ratio was negative in the last four quarters, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. In Q4 2022, the interest coverage ratio was -101.66, which worsened from the previous quarter at -42.43 in Q3 2022. The situation continued to deteriorate with ratios of -33.08 in Q2 2022 and -29.90 in Q1 2022.

A negative interest coverage ratio is a cause for concern as it suggests that Neogenomics Inc. may face challenges in meeting its interest obligations from its operating profits. Investors and creditors may closely monitor this trend to assess the company's ability to service its debt and manage financial risks effectively.