Quest Diagnostics Incorporated (DGX)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 35.26 32.63 33.59 31.63 26.03
DOH days 10.35 11.19 10.87 11.54 14.02

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 35.26
= 10.35

Quest Diagnostics Incorporated has shown a decreasing trend in its days of inventory on hand (DOH) metric over the past five years. From 14.02 days as of December 31, 2020, the DOH decreased to 10.35 days as of December 31, 2024. This trend indicates that the company has been managing its inventory more efficiently, turning over its inventory quicker over time.

A lower DOH implies that Quest Diagnostics is holding less inventory for a shorter period, which can help reduce storage costs, minimize the risk of obsolescence, and improve cash flow by freeing up capital that would otherwise be tied up in inventory. This improvement in inventory management efficiency may be a result of better demand forecasting, streamlined inventory processes, or more effective inventory control measures implemented by the company.