RadNet Inc (RDNT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 579,276 | 367,184 | 324,264 | 270,424 | 241,174 |
| Total current liabilities | US$ in thousands | 437,452 | 466,723 | 374,784 | 398,114 | 327,428 |
| Current ratio | 1.32 | 0.79 | 0.87 | 0.68 | 0.74 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $579,276K ÷ $437,452K
= 1.32
The current ratio of Radnet Inc has shown some fluctuations over the past five years. In 2023, the current ratio improved to 1.32 from 0.79 in 2022, indicating that the company's short-term liquidity position strengthened significantly. This means that Radnet Inc's current assets were 1.32 times its current liabilities at the end of 2023, a positive sign for meeting its short-term obligations.
Comparing to the previous years, the current ratio had been below 1 in 2020 and 2019, which could raise concerns about the company's ability to cover its short-term liabilities with its current assets. The increase in the current ratio in 2021 and further improvement in 2022 and 2023 suggest that Radnet Inc has made progress in managing its working capital more effectively.
Overall, while the current ratio of Radnet Inc has fluctuated in recent years, the upward trend observed from 2021 to 2023 indicates a positive movement towards a stronger short-term liquidity position for the company. However, further analysis of other liquidity ratios and a deeper look into the components of current assets and liabilities would provide a more comprehensive evaluation of Radnet Inc's overall liquidity management.
Peer comparison
Dec 31, 2023