RadNet Inc (RDNT)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 2,793 3,044 10,650 24,727 -14,840
Total stockholders’ equity US$ in thousands 902,308 630,695 332,995 228,904 165,743
ROE 0.31% 0.48% 3.20% 10.80% -8.95%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,793K ÷ $902,308K
= 0.31%

RadNet Inc's return on equity (ROE) has exhibited significant fluctuations over the past five years. In December 2020, the ROE stood at -8.95%, reflecting a negative return. However, by December 2021, the ROE showed a notable improvement, reaching 10.80%, indicating a turnaround in the company's profitability and efficiency in generating returns for its shareholders.

Subsequently, in December 2022, the ROE decreased to 3.20%, signaling a slight drop in the company's ability to utilize equity effectively to generate profits. The trend continued in December 2023 with a further decline to 0.48%, highlighting potential challenges or inefficiencies in RadNet's operations impacting shareholder returns.

By December 2024, the ROE decreased marginally to 0.31%, indicating a continued struggle to maintain profitability relative to the equity invested in the company. Overall, RadNet Inc's ROE trend suggests a mix of positive and negative performance indicators, highlighting the importance of closely monitoring the company's operational efficiency and profitability to enhance shareholder value in the future.