RadNet Inc (RDNT)

Working capital turnover

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
Revenue (ttm) US$ in thousands 1,823,485 1,772,946 1,713,772 1,657,773 1,616,630 1,580,123 1,528,199 1,478,859 1,430,062 1,379,335 1,361,981 1,341,524 1,315,076 1,289,862 1,248,948 1,105,596 1,071,841 1,064,746 1,065,662 1,164,193
Total current assets US$ in thousands 1,019,250 1,016,250 1,004,720 795,828 579,276 578,672 602,691 342,685 367,184 324,505 319,104 288,696 324,264 339,996 334,919 222,997 270,424 259,056 247,520 280,199
Total current liabilities US$ in thousands 479,712 470,130 474,201 427,887 437,452 407,077 434,234 407,143 466,723 409,223 404,518 381,298 374,784 371,495 381,267 402,617 398,114 373,787 382,393 327,991
Working capital turnover 3.38 3.25 3.23 4.51 11.40 9.21 9.07 — — — — — — — — — — — — —

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,823,485K ÷ ($1,019,250K – $479,712K)
= 3.38

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. RadNet Inc's working capital turnover has shown fluctuations over the reporting periods provided.

From March 31, 2023, through March 31, 2024, there was a significant decrease in the working capital turnover ratio, dropping from 11.40 to 4.51. This decline suggests a potential inefficiency in managing working capital during this period.

In the subsequent quarter, the ratio decreased further to 3.23, indicating a continued challenge in leveraging working capital effectively to support operational activities.

However, as of September 30, 2024, there was a slight improvement in the ratio to 3.25, which was followed by another small increase to 3.38 by December 31, 2024. Although there was an uptick in the ratio, it still remained significantly lower than the figures recorded in earlier periods.

Overall, RadNet Inc's working capital turnover has displayed variability, with a noticeable decline followed by marginal improvements, suggesting a need for the company to focus on optimizing its working capital management to enhance operational efficiency and financial performance.