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.