Quest Diagnostics Incorporated (DGX)

Days of inventory on hand (DOH)

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
Inventory turnover 35.49 35.09 34.73 34.51 32.61 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
DOH days 10.28 10.40 10.51 10.58 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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 35.49
= 10.28

The days of inventory on hand (DOH) for Quest Diagnostics Incorporated have shown a fluctuating trend over the periods reported. Starting at 9.08 days on March 31, 2020, the DOH increased to 14.03 days by September 30, 2020. Thereafter, it gradually decreased to 10.13 days on September 30, 2022, before showing a slight increase to 11.19 days by December 31, 2023.

Overall, the company has managed to keep its inventory levels within a relatively stable range, indicating effective inventory management practices. A lower DOH suggests that the company is efficiently managing its inventory, potentially reducing carrying costs and minimizing the risk of obsolescence. However, it is essential for Quest Diagnostics to continuously monitor its inventory levels to ensure optimal balance between having enough inventory to meet demand and avoiding excess inventory holding costs.