RadNet Inc (RDNT)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 98,697 | 46,363 | 82,554 | 35,684 | 69,878 |
| Interest expense | US$ in thousands | 64,483 | 50,841 | 48,876 | 46,092 | 48,439 |
| Interest coverage | 1.53 | 0.91 | 1.69 | 0.77 | 1.44 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $98,697K ÷ $64,483K
= 1.53
Interest coverage ratio measures the company's ability to meet its interest obligations from its operating earnings.
Over the past five years, Radnet Inc's interest coverage ratio has fluctuated. In 2023, the interest coverage ratio improved to 1.54 from 1.18 in 2022. This indicates that the company's operating earnings were able to cover its interest expenses 1.54 times in 2023.
The ratio was highest in 2021 at 2.17, showing a stronger ability to cover interest payments that year. However, there was a significant decrease in 2020 with a ratio of 0.59, suggesting that the company faced challenges in meeting its interest obligations from operating earnings that year.
Overall, the interest coverage ratio of Radnet Inc has shown variability over the years, and investors and creditors may need to closely monitor this ratio to assess the company's financial health and ability to service its debt.
Peer comparison
Dec 31, 2023