RadNet Inc (RDNT)

Receivables 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
Receivables US$ in thousands 185,821 163,707 185,328 140,446 135,421
Receivables turnover 9.81 9.88 7.72 9.36 7.91

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,823,480K ÷ $185,821K
= 9.81

Based on the provided data, the receivables turnover for RadNet Inc has shown some fluctuation over the years.

In 2020, the receivables turnover was 7.91, indicating that the company collected its accounts receivable approximately 7.91 times during that year. This suggests a moderate efficiency in collecting the outstanding receivables.

The ratio improved in 2021 to 9.36, which could indicate that the company was able to collect its accounts receivable more frequently during that period, reflecting stronger collections management.

However, in 2022, the receivables turnover decreased to 7.72, potentially signaling a slowdown in collections or a lengthening of the collection period.

The following year, in 2023, the receivables turnover increased significantly to 9.88, showing a notable improvement in collecting accounts receivable, possibly due to enhanced collection practices or a reduction in outstanding receivables.

In 2024, the ratio remained high at 9.81, indicating that RadNet Inc continued to efficiently collect its accounts receivable during that year.

Overall, the fluctuations in the receivables turnover ratios for RadNet Inc suggest varying levels of efficiency in managing accounts receivable over the years. It is essential for the company to continue monitoring and optimizing its collections processes to ensure timely and effective collection of outstanding receivables.