RadNet Inc (RDNT)

Cash ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash and cash equivalents US$ in thousands 342,570 337,884 356,651 90,844 127,834 95,006 99,170 70,713 134,606 151,253 140,852 31,091 102,018 89,739 84,583 94,282 40,165 37,688 30,504 10,428
Short-term investments US$ in thousands — — — — — — — — — — 41,375 36,813 34,528 0 — — — — — —
Total current liabilities US$ in thousands 437,452 407,077 434,234 407,143 466,723 409,223 404,518 381,298 374,784 371,495 381,267 402,617 398,114 373,787 382,393 327,991 327,428 309,516 293,249 300,586
Cash ratio 0.78 0.83 0.82 0.22 0.27 0.23 0.25 0.19 0.36 0.41 0.48 0.17 0.34 0.24 0.22 0.29 0.12 0.12 0.10 0.03

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($342,570K + $—K) ÷ $437,452K
= 0.78

The cash ratio measures a company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations without relying on external sources of financing.

Based on the data provided, Radnet Inc's cash ratio has shown fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the cash ratio was 0.89 and 0.95 respectively, indicating that the company had sufficient cash on hand to cover its short-term obligations comfortably during these periods.

However, in Q1 2023, the cash ratio dropped significantly to 0.36, suggesting a potential liquidity challenge for the company during that quarter. It is important to further investigate the reason behind this sharp decline and assess if it was a one-time event or a recurring issue.

Comparing the latest ratios to those from the previous years, there seems to be an improvement in the company's cash position as the ratios have generally increased since Q1 2022. This trend indicates a positive development in Radnet Inc's liquidity management over the past few quarters.

Overall, the cash ratio analysis suggests that Radnet Inc has generally been maintaining a healthy level of liquidity to meet its short-term obligations, with some fluctuations observed in certain quarters. Continuous monitoring of the cash ratio will be essential to ensure the company's continued ability to cover its short-term liabilities effectively.