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.
Peer comparison
Dec 31, 2023