RadNet Inc (RDNT)

Cash conversion cycle

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days — — — — —
Days of sales outstanding (DSO) days 37.20 36.96 47.30 38.98 46.12
Number of days of payables days 273.85 361.94 351.75 339.18 279.14
Cash conversion cycle days -236.66 -324.98 -304.45 -300.19 -233.03

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 37.20 – 273.85
= -236.66

The cash conversion cycle for RadNet Inc has shown a fluctuating trend over the years as follows:

- On December 31, 2020, the cash conversion cycle was at -233.03 days, indicating that the company was able to collect cash from its sales and convert it back into cash in a relatively efficient manner within that timeframe.
- The cycle improved further to -300.19 days by December 31, 2021, suggesting a more effective management of cash flows and working capital.
- However, by December 31, 2022, the cash conversion cycle increased slightly to -304.45 days, which could be due to changing business dynamics or operational inefficiencies.
- Subsequently, on December 31, 2023, the cycle further extended to -324.98 days, potentially indicating delays in receiving payments or managing inventory levels.
- Finally, by December 31, 2024, the cycle improved to -236.66 days, reflecting a better performance in managing cash inflows and outflows efficiently.

Overall, RadNet Inc's cash conversion cycle has exhibited both improvements and fluctuations during the period under review, suggesting the need for continued monitoring and potential operational adjustments to maintain effective cash flow management.