RadNet Inc (RDNT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.95% | 92.33% | 92.55% | 92.92% | 91.45% |
| Operating profit margin | 5.74% | 6.11% | 3.24% | 6.28% | 3.33% |
| Pretax margin | 0.48% | 0.71% | 1.40% | 2.99% | -1.30% |
| Net profit margin | 0.15% | 0.19% | 0.74% | 1.88% | -1.38% |
RadNet Inc has shown improvement in its profitability ratios over the years.
1. Gross Profit Margin: The company's gross profit margin has been consistently high, ranging between 91.45% to 92.95%. This indicates that RadNet Inc efficiently manages its production costs and generates a significant margin on its services.
2. Operating Profit Margin: RadNet Inc's operating profit margin has shown variability but has generally improved from 3.33% in 2020 to 5.74% in 2024. This indicates that the company has been able to control its operating expenses better and generate more profit from its core operations.
3. Pre-Tax Margin: The pre-tax margin of RadNet Inc has also shown improvement over the years, moving from a negative percentage in 2020 to a positive 0.48% in 2024. This implies that the company has been able to effectively manage its tax obligations and generate more pre-tax profits.
4. Net Profit Margin: The net profit margin of RadNet Inc has also improved gradually from a negative 1.38% in 2020 to a positive 0.15% in 2024. This indicates that the company has been able to enhance its overall profitability by controlling other expenses and taxes to generate more bottom-line profits.
Overall, RadNet Inc's profitability ratios demonstrate a positive trend, showing the company's ability to effectively manage its costs and improve its overall profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.18% | 3.67% | 1.90% | 4.01% | 2.00% |
| Return on assets (ROA) | 0.08% | 0.11% | 0.44% | 1.20% | -0.83% |
| Return on total capital | 5.52% | 6.84% | 3.95% | 8.49% | 4.58% |
| Return on equity (ROE) | 0.31% | 0.48% | 3.20% | 10.80% | -8.95% |
RadNet Inc's profitability ratios show mixed performance over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased from 2.00% in 2020 to 4.01% in 2021, indicating improved operational efficiency.
- However, there was a drop in 2022 to 1.90%, followed by a rebound to 3.67% in 2023 and then a slight decrease to 3.18% in 2024. This suggests some volatility in the company's operational profitability.
2. Return on Assets (ROA):
- The ROA was negative in 2020 at -0.83%, but improved to 1.20% in 2021.
- However, it subsequently declined to 0.44% in 2022, 0.11% in 2023, and further to 0.08% in 2024. This indicates that the company's overall asset utilization and profitability may have been inconsistent.
3. Return on Total Capital:
- The Return on Total Capital increased steadily from 4.58% in 2020 to 8.49% in 2021, reflecting better returns on the company's overall capital investment.
- There was a slight dip in 2022 to 3.95%, followed by an increase to 6.84% in 2023 and a slight decline to 5.52% in 2024. Overall, the company has shown moderate returns on its total capital.
4. Return on Equity (ROE):
- The ROE was significantly negative in 2020 at -8.95%, but turned positive and improved to 10.80% in 2021.
- However, there was a decline in 2022 to 3.20%, followed by further decreases to 0.48% in 2023 and 0.31% in 2024, indicating decreasing returns for equity holders.
In summary, while RadNet Inc's Operating ROA and Return on Total Capital show some positive trends, its ROA and ROE display inconsistency and declining performance. These ratios suggest that the company may need to focus on improving asset utilization, profitability, and returns for its stakeholders in the upcoming periods to drive overall profitability.