RadNet Inc (RDNT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 98,697 | 95,965 | 59,638 | 54,755 | 46,365 | 29,415 | 55,061 | 63,181 | 82,553 | 98,805 | 89,610 | 62,111 | 35,682 | 38,552 | 32,027 | 53,832 | 69,878 | 45,560 | 45,158 | 39,044 |
| Interest expense (ttm) | US$ in thousands | 64,483 | 63,319 | 59,624 | 54,970 | 50,841 | 47,246 | 46,858 | 47,644 | 48,877 | 49,678 | 48,707 | 47,367 | 46,159 | 45,360 | 46,194 | 47,762 | 48,439 | 48,702 | 47,470 | 45,712 |
| Interest coverage | 1.53 | 1.52 | 1.00 | 1.00 | 0.91 | 0.62 | 1.18 | 1.33 | 1.69 | 1.99 | 1.84 | 1.31 | 0.77 | 0.85 | 0.69 | 1.13 | 1.44 | 0.94 | 0.95 | 0.85 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $98,697K ÷ $64,483K
= 1.53
The interest coverage ratio of Radnet Inc has been fluctuating over the past eight quarters, ranging between 1.18 and 2.01. The ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio indicates that the company is more capable of servicing its interest payments from its operating income.
In the most recent quarter (Q4 2023), the interest coverage ratio was 1.54, which implies that Radnet Inc earned $1.54 in operating income for every $1 of interest expense. While this shows a slight improvement from the previous quarter, the ratio remains relatively low compared to historical levels.
Looking at the trend, the interest coverage ratio has been gradually decreasing since Q2 2022, where it peaked at 2.01. This downward trend suggests that the company's ability to cover interest expenses with its operating income has weakened over the past year.
Overall, Radnet Inc's interest coverage ratio indicates that the company may be facing challenges in generating sufficient earnings to comfortably cover its interest obligations. It would be important for stakeholders to closely monitor this ratio and assess the company's financial stability and ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023