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RadNet earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score58 / 100 · grade C · rank 750 of 1027

RadNet (RDNT) scores 58 of 100 for earnings quality, grade C: rank 750 of 1027 companies and 87 of 126 in health. It loses the most points on adjusted earnings 164% below GAAP, discretionary accruals of -5.1% of assets (modified Jones), larger than most, Montier C-score 2 of 5 checks failed. It earns full or near-full marks for Dechow F-score 0.96 (normal).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -9.0% of assets, lower than 81% of companies (profit backed by cash)2227
Dechow F-scoreDechow F-score 0.96 (normal)2020
Montier C-scoreMontier C-score 2 of 5 checks failed1220
Discretionary accrualsdiscretionary accruals of -5.1% of assets (modified Jones), larger than most413
Non-GAAP gapadjusted earnings 164% below GAAP013
Earnings smoothnessprofit far steadier than cash flow (smoothness 0.25)17
RDNT: share of the available points, by componentRDNT: share of the available points, by componentAccruals81%Discretionary accruals32%Dechow F-score100%Montier C-score60%Earnings smoothness10%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

Every company ranked → The full quality workbench, live → RadNet: cash flow →

Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.