RadNet Inc (RDNT)

Debt-to-capital ratio

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
Long-term debt US$ in thousands 991,574 996,272 1,002,390 814,442 812,068 844,302 848,333 852,354 839,344 735,500 737,916 740,707 743,498 746,288 749,079 602,684 612,913 627,226 634,960 723,049
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
Debt-to-capital ratio 0.52 0.53 0.53 0.48 0.56 0.58 0.59 0.72 0.72 0.70 0.70 0.71 0.76 0.77 0.79 0.77 0.79 0.80 0.81 0.85

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $991,574K ÷ ($991,574K + $902,308K)
= 0.52

The debt-to-capital ratio of RadNet Inc has been showing a declining trend over the years. The ratio decreased from 0.85 as of March 31, 2020, to 0.52 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments relative to its total capital structure.

A declining debt-to-capital ratio is generally considered a positive sign as it signifies improved financial health and lower financial risk. RadNet Inc's decreasing ratio suggests that the company has been effectively managing its debt levels and improving its capital structure over the years.

It is important to note that a low debt-to-capital ratio may also indicate that the company is underutilizing debt financing, which could potentially limit its growth opportunities. However, in the case of RadNet Inc, the decreasing trend in the ratio implies a prudent approach to managing its capital structure while maintaining a healthy balance between debt and equity.