RadNet Inc (RDNT)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 104,621 98,697 46,363 82,554 35,684
Long-term debt US$ in thousands 991,574 812,068 839,344 743,498 612,913
Total stockholders’ equity US$ in thousands 902,308 630,695 332,995 228,904 165,743
Return on total capital 5.52% 6.84% 3.95% 8.49% 4.58%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $104,621K ÷ ($991,574K + $902,308K)
= 5.52%

RadNet Inc's return on total capital has displayed fluctuations over the five-year period from 2020 to 2024. The return on total capital increased from 4.58% in 2020 to 8.49% in 2021, indicating improved efficiency in generating profits relative to the total capital employed. However, in 2022, there was a decrease in the return on total capital to 3.95%, suggesting a potential decline in profitability or less effective utilization of capital.

The return on total capital then rebounded to 6.84% in 2023, indicating a recovery in profitability levels. In 2024, the return on total capital slightly decreased to 5.52%, showing a moderate decline in profitability compared to the previous year.

Overall, RadNet Inc's return on total capital demonstrates variability in performance over the period, with periods of improvement and decline. Further analysis of the company's financial and operational strategies may be needed to understand the factors influencing these fluctuations in return on total capital.