RadNet Inc (RDNT)

Liquidity ratios

	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
Current ratio	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	0.74	0.77	0.80	0.72
Quick ratio	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	0.60	0.61	0.65	0.56
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

Radnet Inc's liquidity ratios have shown a consistent improvement in recent quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has increased steadily from 0.79 in Q4 2022 to 1.32 in Q4 2023. This indicates that Radnet Inc's current assets are now 1.32 times its current liabilities, providing a healthy buffer for potential liquidity challenges.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown improvement over the quarters, from 0.79 in Q4 2022 to 1.32 in Q4 2023. This suggests that the company has a sufficient level of highly liquid assets to cover its immediate liabilities, reflecting a stronger liquidity position.

Finally, the cash ratio, which specifically assesses the firm's ability to cover current liabilities with cash and cash equivalents, has shown significant improvement as well. The ratio has increased from 0.32 in Q1 2022 to 0.89 in Q4 2023, indicating an enhanced ability to meet short-term obligations with cash resources alone.

Overall, Radnet Inc's liquidity ratios demonstrate a favorable trend, with increasing values across the current ratio, quick ratio, and cash ratio. This suggests that the company has improved its ability to handle short-term financial obligations and has strengthened its liquidity position over the quarters, which is a positive sign for the company's financial health.

Additional liquidity measure

		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 conversion cycle	days	-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	26.60	50.76	55.88	57.41

The cash conversion cycle for Radnet Inc has exhibited significant fluctuations over the past eight quarters. In Q1 2022, the cycle was 45.03 days, which increased to 45.78 days in Q2 2022 and further to 46.61 days in Q3 2022. However, there was a notable decrease in Q4 2022 when the cycle dropped to 17.66 days.

Subsequently, in Q1 2023, the cycle increased to 48.56 days, the highest in the period under review. This was followed by a slight improvement in Q2 2023 and a further reduction in Q3 2023. Notably, in Q4 2023, Radnet Inc significantly reduced its cash conversion cycle to 10.54 days, the lowest observed during this timeframe.

Overall, the varying trends in the cash conversion cycle suggest fluctuations in Radnet Inc's ability to convert resources into cash efficiently. The company should continue monitoring and managing its working capital effectively to sustain optimized cash flow operations in the future.