RadNet Inc (RDNT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,690,470 | 2,433,910 | 2,058,470 | 1,786,660 | 1,646,990 |
| Total stockholders’ equity | US$ in thousands | 630,695 | 332,995 | 228,904 | 165,743 | 151,685 |
| Financial leverage ratio | 4.27 | 7.31 | 8.99 | 10.78 | 10.86 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,690,470K ÷ $630,695K
= 4.27
The financial leverage ratio of Radnet Inc has shown a declining trend over the five-year period from 2019 to 2023. The ratio decreased from 10.86 in 2019 to 4.27 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and growth. A lower financial leverage ratio suggests that Radnet Inc is using less debt relative to equity in its capital structure, which can potentially reduce financial risk and improve financial stability. Overall, the decreasing trend in the financial leverage ratio implies a more conservative approach to financing by Radnet Inc.
Peer comparison
Dec 31, 2023