RadNet Inc (RDNT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.30 | 0.30 | 0.34 | 0.36 | 0.34 |
| Debt-to-capital ratio | 0.52 | 0.56 | 0.72 | 0.76 | 0.79 |
| Debt-to-equity ratio | 1.10 | 1.29 | 2.52 | 3.25 | 3.70 |
| Financial leverage ratio | 3.64 | 4.27 | 7.31 | 8.99 | 10.78 |
RadNet Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. From 2020 to 2024, the Debt-to-assets ratio has been consistently in the range of 0.30 to 0.36, suggesting that around 30% to 36% of RadNet's assets are financed by debt.
Meanwhile, the Debt-to-capital ratio has shown a decreasing trend from 0.79 in 2020 to 0.52 in 2024. This implies that the proportion of RadNet's capital structure attributed to debt has been declining, indicating a potential reduction in financial risk.
Similarly, the Debt-to-equity ratio has decreased significantly from 3.70 in 2020 to 1.10 in 2024, signaling that the company has been relying more on equity financing rather than debt, leading to a stronger financial position.
Furthermore, the Financial leverage ratio has displayed a notable reduction from 10.78 in 2020 to 3.64 in 2024, indicating a decreasing reliance on debt to support RadNet's operations and investments.
Overall, the decreasing trend in these solvency ratios suggests that RadNet Inc has been efficiently managing its debt levels and improving its financial stability over the years, which could enhance investor confidence in the company's ability to meet its long-term obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.31 | 1.53 | 0.91 | 1.69 | 0.77 |
Interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.
Looking at RadNet Inc's interest coverage from 2020 to 2024, we observe a fluctuating trend. In 2020, the interest coverage was low at 0.77, indicating that the company struggled to cover its interest expenses with its operating income.
However, in the following years, there was an improvement in the interest coverage ratio. By the end of 2021, the ratio increased to 1.69, showing a better ability to cover interest payments.
Although there was a slight decline in 2022 with a ratio of 0.91, it rebounded in 2023 to 1.53, indicating a more comfortable position in meeting interest obligations. By 2024, the interest coverage ratio stood at 1.31, suggesting that RadNet Inc's operating income continued to cover interest expenses adequately.
Overall, while there have been fluctuations in RadNet Inc's interest coverage ratio, the general trend shows an improvement in the company's ability to handle its interest payments over the years. This indicates a better financial health and reduced risk of defaulting on its debt obligations.