RadNet Inc (RDNT)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,690,470 | 2,688,020 | 2,705,290 | 2,414,070 | 2,433,910 | 2,247,160 | 2,240,720 | 2,141,520 | 2,058,470 | 2,042,360 | 2,032,200 | 1,828,790 | 1,786,660 | 1,717,870 | 1,717,000 | 1,699,390 | 1,646,990 | 1,617,900 | 1,596,680 | 1,526,070 |
| Total stockholders’ equity | US$ in thousands | 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 | 151,685 | 134,663 | 133,918 | 135,900 |
| Financial leverage ratio | 4.27 | 4.34 | 4.56 | 7.36 | 7.31 | 7.18 | 7.18 | 7.17 | 8.99 | 9.08 | 10.31 | 9.92 | 10.78 | 10.93 | 11.62 | 13.77 | 10.86 | 12.01 | 11.92 | 11.23 |
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 been fluctuating over the past eight quarters, ranging from 4.27 to 7.36. A higher financial leverage ratio indicates that the company relies more on debt to finance its operations and investments, which can amplify returns but also increase financial risk.
In Q1 2023 and Q2 2023, the financial leverage ratio increased to 7.36 and 4.56, respectively, indicating a significant shift towards higher debt levels. This may suggest that Radnet Inc took on additional debt during this period, potentially to fund expansion or other strategic initiatives.
Conversely, the financial leverage ratio decreased in Q3 2023 to 4.34 and further decreased in Q4 2023 to 4.27. This reduction could signal a deleveraging effort by the company, potentially to reduce financial risk and improve its financial stability.
Overall, the trend in Radnet Inc's financial leverage ratio over the past eight quarters shows fluctuations in the company's debt levels and its reliance on borrowing. Investors and stakeholders should closely monitor these changes to assess the company's capital structure and risk profile.
Peer comparison
Dec 31, 2023