RadNet Inc (RDNT)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 1,823,485 1,772,946 1,713,772 1,657,773 1,616,630 1,580,123 1,528,199 1,478,859 1,430,062 1,379,335 1,361,981 1,341,524 1,315,076 1,289,862 1,248,948 1,105,596 1,071,841 1,064,746 1,065,662 1,164,193
Property, plant and equipment US$ in thousands 694,791 663,867 652,882 618,926 604,401 577,227 576,094 545,492 565,961 515,569 514,661 488,958 484,247 452,145 435,172 412,711 399,335 361,950 370,188 376,431
Fixed asset turnover 2.62 2.67 2.62 2.68 2.67 2.74 2.65 2.71 2.53 2.68 2.65 2.74 2.72 2.85 2.87 2.68 2.68 2.94 2.88 3.09

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,823,485K ÷ $694,791K
= 2.62

RadNet Inc's fixed asset turnover has shown a declining trend over the past few years, starting at 3.09 as of March 31, 2020, and gradually decreasing to 2.62 as of December 31, 2024. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its investment in fixed assets.

A high fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. Conversely, a decreasing trend in the fixed asset turnover ratio may suggest inefficiencies in asset management or a decline in sales relative to the investment in fixed assets.

In the case of RadNet Inc, the declining trend in the fixed asset turnover ratio may indicate potential inefficiencies in utilizing its fixed assets to generate revenue. Further analysis and comparison with industry benchmarks could provide a better understanding of the company's asset utilization efficiency.