RadNet Inc (RDNT)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 128,552 123,927 106,546 93,044 91,623
Payables US$ in thousands 96,450 122,888 102,678 86,461 70,071
Payables turnover 1.33 1.01 1.04 1.08 1.31

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $128,552K ÷ $96,450K
= 1.33

The payables turnover ratio of RadNet Inc has shown a slight decline from 1.31 in 2020 to 1.08 in 2021, further decreasing to 1.04 in 2022, and then to 1.01 in 2023. However, there was an improvement in 2024, with the payables turnover ratio increasing to 1.33. This indicates that the company is taking longer to pay its suppliers in recent years, which may suggest a change in its payment policies or liquidity constraints. The fluctuation in the payables turnover ratio should be further investigated to understand the underlying reasons for these changes and their implications for the company's working capital management and relationships with its suppliers.