RadNet Inc (RDNT)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 98,697 | 46,363 | 82,554 | 35,684 | 69,878 |
| Long-term debt | US$ in thousands | 812,068 | 839,344 | 743,498 | 612,913 | 652,979 |
| Total stockholders’ equity | US$ in thousands | 630,695 | 332,995 | 228,904 | 165,743 | 151,685 |
| Return on total capital | 6.84% | 3.95% | 8.49% | 4.58% | 8.68% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $98,697K ÷ ($812,068K + $630,695K)
= 6.84%
Radnet Inc's return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 6.81%, showing an improvement from the previous year's 5.08%. However, this is lower than the 10.78% achieved in 2021 and the 9.67% in 2019. The return on total capital for 2020 was 3.30%, which was the lowest in the period under review. Overall, the company's return on total capital has shown some variability, with a general upward trend from 2020 to 2021 followed by a slight decline in 2022, before improving again in 2023. This indicates that Radnet Inc has been able to generate a reasonable return on the total capital invested in the business, albeit with some fluctuations.
Peer comparison
Dec 31, 2023