RadNet Inc (RDNT)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,823,480 1,616,630 1,430,060 1,315,080 1,071,840
Property, plant and equipment US$ in thousands 694,791 604,401 565,961 484,247 399,335
Fixed asset turnover 2.62 2.67 2.53 2.72 2.68

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,823,480K ÷ $694,791K
= 2.62

The fixed asset turnover ratio for RadNet Inc has shown some fluctuations over the years based on the provided data. In 2020, the ratio stood at 2.68, indicating that the company generated $2.68 in revenue for every dollar invested in fixed assets.

The ratio increased slightly to 2.72 in 2021, reflecting a more efficient utilization of fixed assets to generate sales. However, in 2022, there was a decrease in the fixed asset turnover to 2.53, suggesting that the company may not have been as effective in utilizing its fixed assets to generate revenue during that period.

In 2023, there was a slight improvement with the fixed asset turnover reaching 2.67, showing that the company was able to generate more revenue relative to its investment in fixed assets compared to the previous year.

However, in 2024, the ratio declined to 2.62, indicating that the company may have experienced challenges in optimizing the use of its fixed assets to drive sales during that period.

Overall, RadNet Inc's fixed asset turnover ratio has exhibited some variability over the years, suggesting fluctuations in the company's efficiency in generating revenue from its investment in fixed assets. Further analysis is needed to understand the underlying factors contributing to these changes in the ratio.