RadNet Inc (RDNT)

Debt-to-equity ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Debt-to-equity ratio 1.10 1.29 2.52 3.25 3.70

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $991,574K ÷ $902,308K
= 1.10

The debt-to-equity ratio of RadNet Inc has shown a decreasing trend over the years, declining from 3.70 in 2020 to 1.10 in 2024. This indicates that the company has been gradually reducing its reliance on debt financing in relation to equity to support its operations and growth. A high debt-to-equity ratio can signify higher financial risk and leverage, while a lower ratio suggests a stronger financial position and lower risk.

The significant drop in the debt-to-equity ratio from 2020 to 2024 suggests that RadNet Inc has been effectively managing its debt levels and improving its financial stability. By decreasing its debt relative to equity, the company may have strengthened its financial health, reduced interest expenses, and enhanced its ability to weather potential economic downturns.

Overall, the decreasing trend in RadNet Inc's debt-to-equity ratio reflects a positive financial strategy that aims to balance debt and equity financing to support sustainable growth and profitability over the years.