RadNet Inc (RDNT)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,616,630 | 1,430,060 | 1,315,080 | 1,071,840 | 1,154,180 |
| Total assets | US$ in thousands | 2,690,470 | 2,433,910 | 2,058,470 | 1,786,660 | 1,646,990 |
| Total asset turnover | 0.60 | 0.59 | 0.64 | 0.60 | 0.70 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,616,630K ÷ $2,690,470K
= 0.60
Total asset turnover measures how efficiently a company utilizes its total assets to generate revenue. Radnet Inc's total asset turnover has fluctuated over the past five years, ranging from 0.59 to 0.70. The trend indicates that the company's efficiency in generating revenue from its assets has been somewhat inconsistent. In 2021, there was a slight improvement in efficiency as the ratio increased to 0.64, but it decreased again in 2022 and 2023 to 0.59 and 0.60, respectively.
A total asset turnover ratio below 1.0 suggests that Radnet Inc is not generating enough revenue relative to its total assets. This could indicate that the company may be underutilizing its assets or facing challenges in generating sales. It is important for Radnet Inc to analyze the reasons behind these fluctuations in total asset turnover and explore ways to improve efficiency in asset utilization to enhance overall financial performance.
Peer comparison
Dec 31, 2023