RadNet Inc (RDNT)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,044 | 10,650 | 24,727 | -14,840 | 14,756 |
| Total stockholders’ equity | US$ in thousands | 630,695 | 332,995 | 228,904 | 165,743 | 151,685 |
| ROE | 0.48% | 3.20% | 10.80% | -8.95% | 9.73% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,044K ÷ $630,695K
= 0.48%
Radnet Inc's return on equity (ROE) has shown significant fluctuations over the past five years. The ROE was negative in 2020, indicating that the company generated a net loss relative to its shareholders' equity. However, in 2021, the ROE rebounded to a strong 10.80%, demonstrating improved profitability and efficiency in the utilization of equity.
Subsequently, in 2022, the ROE decreased to 3.20%, suggesting a potential decline in profitability or an increase in equity base. The latest data for 2023 shows a further decline in ROE to 0.48%, which may raise concerns about the company's ability to generate returns for its shareholders compared to the previous years.
Overall, Radnet Inc's ROE performance appears to be inconsistent, with notable fluctuations that may indicate varying levels of efficiency, profitability, and risk management within the company. Further analysis of the underlying factors driving these changes is warranted to better understand the company's financial health and performance.
Peer comparison
Dec 31, 2023