RadNet Inc (RDNT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 98,697 | 46,363 | 82,554 | 35,684 | 69,878 |
| Total assets | US$ in thousands | 2,690,470 | 2,433,910 | 2,058,470 | 1,786,660 | 1,646,990 |
| Operating ROA | 3.67% | 1.90% | 4.01% | 2.00% | 4.24% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $98,697K ÷ $2,690,470K
= 3.67%
Operating Return on Assets (ROA) is a key financial ratio that indicates how effectively a company is generating operating income from its total assets. Analyzing the trend of Radnet Inc's Operating ROA over the past five years, we observe fluctuations in the company's ability to generate operating income relative to its total assets.
In 2023, Radnet Inc's Operating ROA stood at 3.46%, showing an improvement from the previous year. This indicates that the company was more efficient in generating operating income from its assets compared to the prior year.
In 2022, the Operating ROA was at 2.05%, which was lower than in 2021 but higher than in 2020. This suggests a mixed performance in efficiently utilizing its assets to generate operating income.
The significant drop in Operating ROA to 1.07% in 2020 may indicate operational challenges or decreased profitability relative to the total assets employed during that period.
In 2019, Radnet Inc recorded an Operating ROA of 4.49%, demonstrating strong efficiency in generating operating income relative to its asset base.
Overall, the trend in Radnet Inc's Operating ROA shows variations in the company's ability to utilize its assets effectively to generate operating income, with improvements in some years and declines in others. Further analysis of the company's operational performance and asset management strategies would provide deeper insights into the factors driving these fluctuations in Operating ROA.
Peer comparison
Dec 31, 2023