Quest Diagnostics Incorporated (DGX)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.52 | 7.15 | 7.57 | 7.55 | 8.15 | 7.92 | 8.06 | 7.67 | 7.39 | 7.42 | 8.75 | 7.45 | 6.21 | 5.88 | 6.69 | 7.88 | 7.27 | 6.84 | 6.96 | 6.99 | |
| DSO | days | 48.53 | 51.08 | 48.21 | 48.35 | 44.76 | 46.07 | 45.27 | 47.57 | 49.39 | 49.18 | 41.71 | 48.99 | 58.79 | 62.03 | 54.57 | 46.33 | 50.22 | 53.37 | 52.45 | 52.25 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.52
= 48.53
Quest Diagnostics, Inc. has experienced fluctuations in its Days of Sales Outstanding (DSO) over the past eight quarters. The DSO measures the average number of days it takes for the company to collect payment after making a sale. Typically, a lower DSO indicates that the company is efficient in collecting payments from customers.
In Q4 2023, the DSO increased to 47.74 days from 50.29 days in Q3 2023, which could suggest a longer payment collection period compared to the previous quarter. However, it is still lower than the DSO in Q2 2023 and Q1 2023.
Comparing the DSO in Q4 2023 to the same quarter in the previous year (Q4 2022), there has been an increase from 44.13 days to 47.74 days, indicating potentially slower payment collection cycles.
Overall, it is important for Quest Diagnostics, Inc. to closely monitor and manage its DSO to ensure efficient cash flow and timely collection of receivables from customers. Any significant deviations from industry benchmarks or historical trends should be analyzed and addressed promptly to maintain healthy financial performance.
Peer comparison
Dec 31, 2023