RadNet Inc (RDNT)

Liquidity ratios

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
Current ratio 2.12 2.16 2.12 1.86 1.32 1.42 1.39 0.84 0.79 0.79 0.79 0.76 0.87 0.92 0.88 0.55 0.68 0.69 0.65 0.85
Quick ratio 1.93 2.02 1.98 1.67 1.16 1.24 1.22 0.71 0.67 0.66 0.67 0.62 0.73 0.83 0.91 0.55 0.68 0.61 0.55 0.73
Cash ratio 1.54 1.59 1.56 1.23 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

RadNet Inc's liquidity ratios show varying levels of liquidity over the years.

- The current ratio, which measures the company's ability to cover short-term obligations with its current assets, improved significantly from 0.55 in March 31, 2021, to 2.12 in June 30, 2024, indicating a strong increase in liquidity during this period.

- The quick ratio, a more stringent measure of liquidity as it excludes inventories from current assets, also showed an upward trend from 0.55 in March 31, 2021, to 1.98 in June 30, 2024. This suggests that the company has a sufficient level of highly liquid assets to cover its short-term liabilities.

- The cash ratio, which focuses only on cash and cash equivalents to meet short-term obligations, increased from 0.17 in March 31, 2021, to 1.56 in June 30, 2024. This indicates that RadNet Inc strengthened its ability to meet immediate financial obligations using cash reserves.

Overall, the liquidity ratios of RadNet Inc have shown a positive trend, reflecting improved financial health and ability to meet short-term obligations over the years.

Additional liquidity measure

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
Cash conversion cycle days -253.63 40.98 41.59 41.74 -362.68 38.75 41.67 48.56 -310.66 46.61 45.78 45.03 -307.03 44.91 47.82 50.90 -237.43 47.25 43.57 45.61

The cash conversion cycle of RadNet Inc, a measure of how efficiently the company manages its working capital, shows fluctuating trends over the years. From March 31, 2020, to June 30, 2024, the company experienced variations in the number of days needed to convert its investments in inventory and other resources into cash receipts from customers.

The cash conversion cycle ranged from a positive 45.61 days on March 31, 2020, indicating that it takes the company about 45 days to turn resources into cash, to a negative 362.68 days on December 31, 2023, suggesting that RadNet Inc was able to convert its investments into cash faster than its payables were due.

Significant negative figures like -237.43 days on December 31, 2020, -307.03 days on December 31, 2021, and -310.66 days on December 31, 2022, and -253.63 days on December 31, 2024, are uncommon and could indicate a unique cash management strategy or anomalies in financial reporting. These numbers suggest rapid conversion times and potentially efficient management of working capital during these periods.

The overall trend towards managing the cash conversion cycle faster is positive as it generally signifies better liquidity and operational efficiency. However, fluctuations and extreme negative values should be further analyzed to understand the root causes and implications for RadNet Inc's financial position and management strategies.