RadNet Inc (RDNT)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 104,621 98,697 46,363 82,554 35,684
Total assets US$ in thousands 3,286,690 2,690,470 2,433,910 2,058,470 1,786,660
Operating ROA 3.18% 3.67% 1.90% 4.01% 2.00%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $104,621K ÷ $3,286,690K
= 3.18%

Operating return on assets (Operating ROA) is a key financial metric that indicates the efficiency of RadNet Inc in generating operating profit from its assets.

From the data provided, we observe that RadNet Inc's Operating ROA has fluctuated over the years. It stood at 2.00% as of December 31, 2020, increased to 4.01% by December 31, 2021, then dropped to 1.90% by December 31, 2022. Subsequently, the Operating ROA improved to 3.67% as of December 31, 2023, before settling at 3.18% by December 31, 2024.

The increase in Operating ROA from 2020 to 2021 indicates that RadNet Inc became more efficient in generating operating profit per dollar of assets during that period. However, the decline in 2022 suggests a temporary decrease in this efficiency. The subsequent increase in 2023 followed by a slight decrease in 2024 showcases some fluctuation in the company's ability to generate operating profit from its assets effectively.

Overall, while the Operating ROA of RadNet Inc has shown some volatility, the company has generally demonstrated an improvement in utilizing its assets to generate operating profits over the years covered in the data. Monitoring this metric in conjunction with other financial indicators can provide a more comprehensive understanding of the company's operational performance and efficiency.