RadNet Inc (RDNT)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands 2,793 -4,412 9,919 21,270 3,044 3,969 -12,903 -13,367 10,651 7,763 23,315 18,283 24,728 34,508 24,444 10,977 -14,839 -10,399 -13,360 2,133
Total stockholders’ equity US$ in thousands 902,308 895,313 880,966 872,955 630,695 618,901 593,159 327,922 332,995 313,006 312,183 298,847 228,904 224,837 197,064 184,358 165,743 157,205 147,808 123,375
ROE 0.31% -0.49% 1.13% 2.44% 0.48% 0.64% -2.18% -4.08% 3.20% 2.48% 7.47% 6.12% 10.80% 15.35% 12.40% 5.95% -8.95% -6.61% -9.04% 1.73%

December 31, 2024 calculation

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

RadNet Inc's return on equity (ROE) has shown significant fluctuations over the past few years. The ROE was negative in several quarters in 2020, indicating that the company struggled to generate profits relative to its shareholder equity during that period.

However, there was a notable improvement in ROE in the subsequent quarters of 2021, with ROE reaching double-digit percentages, signaling a more efficient use of equity to generate earnings. This positive trend continued into the first half of 2022, where ROE remained above 5%.

In the latter half of 2022 and going into 2023, ROE started to dip again, slipping into negative territory in several quarters. This might indicate challenges in maintaining profitability and generating returns for shareholders during this period.

The company managed to recover slightly in terms of ROE by the end of 2023 and into 2024, with ROE hovering around the low single-digit percentages. This suggests that efforts were made to improve the efficiency of utilizing equity to generate returns, although there is still room for growth and improvement.

Overall, the analysis of RadNet Inc's ROE highlights both positive and challenging periods in terms of generating returns for shareholders, indicating the need for consistent performance improvement and strategic decision-making to enhance shareholder value.