RadNet Inc (RDNT)
Activity ratios
Short-term
Turnover 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 9.81 | 8.91 | 8.78 | 8.74 | 9.88 | 9.42 | 8.76 | 7.52 | 7.72 | 7.83 | 7.97 | 8.11 | 9.36 | 8.13 | 7.63 | 7.17 | 7.91 | 7.72 | 8.38 | 8.00 |
| Payables turnover | 1.26 | — | — | — | 0.91 | — | — | — | 1.02 | — | — | — | 1.05 | — | — | — | 1.29 | — | — | — |
| Working capital turnover | 3.38 | 3.25 | 3.23 | 4.51 | 11.40 | 9.21 | 9.07 | — | — | — | — | — | — | — | — | — | — | — | — | — |
The receivables turnover ratio for RadNet Inc has shown a consistent trend of improvement over the past few years, indicating that the company is collecting its accounts receivable more efficiently. This signifies that RadNet is converting its credit sales into cash at a faster rate.
On the other hand, the payables turnover ratio has been relatively stable and low, suggesting that RadNet is taking a longer time to pay its suppliers. This may indicate favorable credit terms negotiated with suppliers or potential liquidity management strategies.
The working capital turnover ratio was not available for the earlier periods, but in recent years, it has shown a fluctuating trend. The increase in this ratio from 2023 to 2024 could indicate that RadNet is more effectively utilizing its working capital to generate sales. However, the ratio decreased in the last quarter of 2024, which may suggest a decline in the efficiency of working capital utilization during that period. Monitoring this ratio closely in the future will be important to assess the company's ongoing efficiency in utilizing its working capital to drive revenue.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 37.20 | 40.98 | 41.59 | 41.74 | 36.96 | 38.75 | 41.67 | 48.56 | 47.30 | 46.61 | 45.78 | 45.03 | 38.98 | 44.91 | 47.82 | 50.90 | 46.12 | 47.25 | 43.57 | 45.61 |
| Number of days of payables | days | 290.83 | — | — | — | 399.64 | — | — | — | 357.96 | — | — | — | 346.01 | — | — | — | 283.55 | — | — | — |
The analysis of RadNet Inc's activity ratios reveals the following trends:
1. Days of Inventory on Hand (DOH) remained constant and were not provided in the financial data for the period under review, suggesting that the company has a consistent level of inventory turnover.
2. Days of Sales Outstanding (DSO) fluctuated over the periods, ranging between 36.96 days and 50.90 days. A decreasing trend was observed from December 2021 to December 2024, implying that the company has been collecting its accounts receivable more efficiently.
3. Number of Days of Payables increased significantly from 283.55 days in December 2020 to 399.64 days in December 2023, and then decreased to 290.83 days in December 2024. This indicates that RadNet Inc has been taking longer to pay its suppliers, potentially improving its cash flow position.
Overall, these activity ratios suggest that RadNet Inc has been effectively managing its inventory turnover, improving its accounts receivable collection efficiency, and strategically managing its payables to optimize cash flow and working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.55 | 0.54 | 0.53 | 0.56 | 0.60 | 0.59 | 0.56 | 0.61 | 0.59 | 0.61 | 0.61 | 0.63 | 0.64 | 0.63 | 0.61 | 0.60 | 0.60 | 0.62 | 0.62 | 0.69 |
RadNet Inc's fixed asset turnover ratio has been relatively stable over the past few years, ranging from 2.53 to 3.09. This ratio indicates that the company generates between 2.53 to 3.09 in sales revenue for every dollar invested in fixed assets.
On the other hand, the total asset turnover ratio has shown a decreasing trend, declining from 0.69 to 0.55 over the same period. This ratio measures how efficiently the company is utilizing all its assets to generate sales. The decreasing trend suggests that RadNet Inc's efficiency in generating sales revenue from its total assets has been decreasing over time.
Overall, while the fixed asset turnover has remained relatively stable, the decreasing trend in total asset turnover indicates a potential inefficiency in utilizing the company's total assets to generate sales revenue. Further analysis may be needed to understand the factors contributing to these trends and to identify potential areas for improvement.