Quest Diagnostics Incorporated (DGX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,100,000 | 9,153,000 | 9,351,000 | 9,467,000 | 9,745,000 | 10,142,000 | 10,425,000 | 10,520,000 | 10,628,000 | 10,932,000 | 10,982,000 | 10,297,000 | 9,437,000 | 8,361,000 | 7,531,000 | 7,657,000 | 7,726,000 | 7,639,000 | 7,572,000 | 7,538,000 |
| Property, plant and equipment | US$ in thousands | 1,816,000 | 1,830,000 | 1,814,000 | 1,795,000 | 1,766,000 | 1,707,000 | 1,664,000 | 1,668,000 | 1,707,000 | 1,634,000 | 1,622,000 | 1,624,000 | 1,627,000 | 1,544,000 | 1,505,000 | 1,461,000 | 1,453,000 | 1,351,000 | 1,307,000 | 1,277,000 |
| Fixed asset turnover | 5.01 | 5.00 | 5.15 | 5.27 | 5.52 | 5.94 | 6.27 | 6.31 | 6.23 | 6.69 | 6.77 | 6.34 | 5.80 | 5.42 | 5.00 | 5.24 | 5.32 | 5.65 | 5.79 | 5.90 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,100,000K ÷ $1,816,000K
= 5.01
Quest Diagnostics, Inc.'s fixed asset turnover ratio has been consistently high over the past eight quarters, indicating the company's ability to generate revenue efficiently from its fixed assets. The ratio has been relatively stable, ranging from 5.08 to 6.40, with a general downward trend observed from Q1 2022 to Q4 2023.
The declining trend in fixed asset turnover may suggest that Quest Diagnostics' fixed assets are not being utilized as efficiently in generating sales in recent quarters. However, the ratio still remains at a relatively high level, indicating that the company is effectively utilizing its fixed assets to generate revenue compared to industry peers or historical performance.
It is essential for Quest Diagnostics to closely monitor its fixed asset turnover ratio and consider strategies to improve asset utilization efficiency, such as enhancing operational processes, optimizing asset utilization, or investing in new technologies to increase productivity.
Peer comparison
Dec 31, 2023