Quest Diagnostics Incorporated (DGX)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 32.63 | 33.82 | 34.23 | 33.49 | 33.59 | 36.03 | 35.53 | 33.50 | 31.63 | 32.17 | 32.68 | 27.62 | 26.03 | 26.02 | 32.59 | 40.18 | 40.95 | 44.71 | 47.30 | 50.45 | |
| DOH | days | 11.19 | 10.79 | 10.66 | 10.90 | 10.87 | 10.13 | 10.27 | 10.90 | 11.54 | 11.35 | 11.17 | 13.21 | 14.02 | 14.03 | 11.20 | 9.08 | 8.91 | 8.16 | 7.72 | 7.24 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 32.63
= 11.19
Quest Diagnostics, Inc. has maintained a relatively stable trend in its Days of Inventory on Hand (DOH) over the past eight quarters. The company's DOH ranged between 10.13 days to 11.19 days during this period, with a minor fluctuation observed. The average DOH over this period is approximately 10.72 days, indicating that on average, Quest Diagnostics holds enough inventory to cover its sales for approximately 10.72 days.
A lower DOH value typically suggests that the company is managing its inventory efficiently, while a higher DOH may indicate excess inventory or slow-moving goods. Quest Diagnostics' DOH values are within a reasonable range for a company in the healthcare services industry, where demand stability and inventory management are critical.
Overall, Quest Diagnostics' DOH trend indicates that the company has been effectively managing its inventory levels, striking a balance between having enough inventory to meet demand and avoiding unnecessary holding costs.
Peer comparison
Dec 31, 2023