Quest Diagnostics Incorporated (DGX)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,672,000 | 6,457,000 | 6,321,000 | 6,246,000 | 6,195,000 | 6,222,000 | 6,299,000 | 6,364,000 | 6,450,000 | 6,593,000 | 6,645,000 | 6,599,000 | 6,579,000 | 6,594,000 | 6,504,000 | 6,160,000 | 5,804,000 | 5,335,000 | 5,019,000 | 5,063,000 |
| Inventory | US$ in thousands | 188,000 | 184,000 | 182,000 | 181,000 | 190,000 | 184,000 | 184,000 | 190,000 | 192,000 | 183,000 | 187,000 | 197,000 | 208,000 | 205,000 | 199,000 | 223,000 | 223,000 | 205,000 | 154,000 | 126,000 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,672,000K ÷ $188,000K
= 35.49
Quest Diagnostics Incorporated has shown a stable trend in inventory turnover over the past few years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period the company sells and replaces its inventory.
Based on the data provided, the inventory turnover ratio for Quest Diagnostics has ranged from a high of 40.18 on March 31, 2020, to a low of 26.02 on September 30, 2020. The ratio has generally stayed within the range of 26 to 36 times annually, with some fluctuations.
A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently, which can be a positive sign of effective inventory management. However, a very high ratio could also indicate stockouts or lost sales due to inadequate inventory levels. On the other hand, a lower ratio may suggest overstocking or slow-moving inventory, which can tie up working capital and lead to potential obsolescence.
Overall, Quest Diagnostics' inventory turnover has remained relatively stable, indicating a moderate level of efficiency in managing its inventory levels. It would be beneficial for the company to continue monitoring this ratio to ensure optimal inventory management practices.
Peer comparison
Dec 31, 2024
Dec 31, 2024