RadNet Inc (RDNT)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 104,621 104,430 113,770 103,365 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
Interest expense (ttm) US$ in thousands 79,849 78,383 75,071 65,028 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
Interest coverage 1.31 1.33 1.52 1.59 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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $104,621K ÷ $79,849K
= 1.31

The interest coverage ratio is a financial metric that indicates a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio signifies that the company is more capable of meeting its interest payments.

Based on the provided data from March 2020 to December 2024, RadNet Inc's interest coverage ratio fluctuated over time. The ratio ranged from a low of 0.62 in September 2022 to a high of 1.99 in September 2021. Notably, the company experienced a significant improvement in its interest coverage from mid-2020 to mid-2021, indicating a stronger ability to cover its interest obligations.

While the interest coverage ratio has shown some variability, overall, RadNet Inc has generally maintained a ratio above 1 throughout the period, suggesting that the company has generated sufficient earnings to cover its interest expenses. However, investors and creditors may monitor the trend of this ratio to ensure the company's ability to service its debt obligations remains stable in the long term.