RadNet Inc (RDNT)

Working capital 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
Total current assets US$ in thousands 1,019,250 579,276 367,184 324,264 270,424
Total current liabilities US$ in thousands 479,712 437,452 466,723 374,784 398,114
Working capital turnover 3.38 11.40 — — —

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,823,480K ÷ ($1,019,250K – $479,712K)
= 3.38

The working capital turnover ratio for RadNet Inc has exhibited variability over the years. In 2020, the ratio was not available. Similarly, in 2021 and 2022, the data for this ratio is not provided. However, in 2023, the working capital turnover ratio improved significantly, reaching a value of 11.40. This indicates that the company was able to effectively utilize its working capital to generate sales during that period. Subsequently, in 2024, the working capital turnover ratio decreased to 3.38, suggesting a potential decrease in efficiency in utilizing working capital to drive revenue generation. It would be advisable for RadNet Inc to analyze the factors contributing to this decline in order to optimize working capital management in the future.