RadNet Inc (RDNT)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 740,020 342,570 127,834 134,606 102,018
Short-term investments US$ in thousands — — — — 34,528
Receivables US$ in thousands 185,821 163,707 185,328 140,446 135,421
Total current liabilities US$ in thousands 479,712 437,452 466,723 374,784 398,114
Quick ratio 1.93 1.16 0.67 0.73 0.68

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($740,020K + $—K + $185,821K) ÷ $479,712K
= 1.93

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using only its most liquid assets. It is calculated as (Current Assets - Inventory) / Current Liabilities.

For RadNet Inc, the quick ratio has shown some variability over the years:
- As of December 31, 2020, the quick ratio was 0.68, indicating that the company had $0.68 in liquid assets available to cover each dollar of current liabilities.
- By December 31, 2021, the quick ratio improved slightly to 0.73, suggesting a slight strengthening of the company's short-term liquidity position.
- However, by December 31, 2022, the quick ratio decreased to 0.67, indicating a potential decrease in the company's ability to meet short-term obligations without relying on inventory.
- The trend reversed significantly by December 31, 2023, when the quick ratio surged to 1.16, signaling a substantial improvement in the company's short-term liquidity position.
- This positive trend continued into December 31, 2024, with a quick ratio of 1.93, indicating that RadNet Inc had significantly more liquid assets available to cover its current liabilities, reflecting a strong financial position.

Overall, RadNet Inc's quick ratio has fluctuated over the years, with notable improvements in recent periods, demonstrating a positive trend in the company's ability to meet its short-term obligations with liquid assets.