Quest Diagnostics Incorporated (DGX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,199,000 | 6,450,000 | 6,579,000 | 5,804,000 | 5,037,000 |
| Payables | US$ in thousands | 378,000 | 324,000 | 357,000 | 446,000 | 263,000 |
| Payables turnover | 16.40 | 19.91 | 18.43 | 13.01 | 19.15 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,199,000K ÷ $378,000K
= 16.40
Quest Diagnostics, Inc.'s payables turnover has displayed fluctuations over the past five years. In 2023, the payables turnover ratio decreased to 16.40 from the previous year's 19.91. This indicates that the company took longer to pay its suppliers compared to the previous year. Despite the decrease in 2023, the payables turnover ratio remains relatively high, suggesting efficient management of accounts payable.
Comparing 2023 to 2021 and 2020, the payables turnover ratio was higher, indicating that the company was paying its suppliers at a faster rate during those years. However, in 2020, there was a notable dip in the payables turnover ratio compared to 2019, indicating a possible increase in the payment period to suppliers during that year.
Overall, the trend in Quest Diagnostics' payables turnover shows some variability but generally suggests effective management of accounts payable, with the company maintaining a relatively efficient payment process to its suppliers. Further analysis of the underlying factors contributing to these fluctuations would provide a more in-depth understanding of the company's financial management strategies.
Peer comparison
Dec 31, 2023