RadNet Inc (RDNT)

Solvency ratios

	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
Debt-to-assets ratio	0.30	0.30	0.31	0.27	0.30	0.31	0.31	0.35	0.34	0.33	0.33	0.35	0.36	0.37	0.37	0.33	0.34	0.37	0.37	0.43
Debt-to-capital ratio	0.52	0.53	0.53	0.48	0.56	0.58	0.59	0.72	0.72	0.70	0.70	0.71	0.76	0.77	0.79	0.77	0.79	0.80	0.81	0.85
Debt-to-equity ratio	1.10	1.11	1.14	0.93	1.29	1.36	1.43	2.60	2.52	2.35	2.36	2.48	3.25	3.32	3.80	3.27	3.70	3.99	4.30	5.86
Financial leverage ratio	3.64	3.66	3.67	3.40	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

RadNet Inc's solvency ratios indicate its ability to meet its long-term financial obligations.

The Debt-to-assets ratio has seen a steady decline over the years, starting at 0.43 in March 2020 and reaching 0.30 by December 2024. This decreasing trend implies that a smaller proportion of RadNet's assets are financed by debt, which is a positive signal for investors and lenders.

Similarly, the Debt-to-capital ratio has also exhibited a downward trajectory, dropping from 0.85 in March 2020 to 0.52 by December 2024. This suggests that RadNet has been reducing its reliance on debt financing in relation to its total capital, which can enhance its financial stability and flexibility.

The Debt-to-equity ratio has followed a consistent downward trend as well, decreasing from 5.86 in March 2020 to 1.10 by December 2024. This indicates that RadNet has been decreasing its debt relative to its equity, which portrays an improving financial health and lower risk for the company.

Lastly, the Financial leverage ratio has shown a significant decrease over the years, falling from 13.77 in March 2020 to 3.64 by December 2024. This decline points towards RadNet reducing its financial leverage and becoming less reliant on debt to fund its operations, which can enhance its ability to withstand economic downturns and maintain profitability.

Overall, the solvency ratios of RadNet Inc demonstrate a positive trend of decreasing debt levels and improving financial health, indicating a solid foundation for long-term sustainability and growth.

Coverage ratios

	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
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

Interest coverage is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expense incurred by the company. A higher interest coverage ratio signifies a stronger ability to cover interest payments and suggests lower financial risk.

Analyzing RadNet Inc's interest coverage ratio over the provided periods, we observe fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio ranged from a low of 0.62 on September 30, 2022, to a high of 1.99 on September 30, 2021. This indicates that RadNet Inc faced challenges in certain periods in meeting its interest obligations, which could raise concerns about its financial stability.

Despite the fluctuations, it is positive to note that the interest coverage ratio generally improved from the initial low point in September 2020 to the most recent data point of 1.31 on December 31, 2024. This trend suggests an overall strengthening of RadNet Inc's ability to cover its interest expenses. However, it is important for stakeholders to continue monitoring the trend of the interest coverage ratio to ensure sustained improvement in the company's financial health and debt repayment capacity.