Quest Diagnostics Incorporated (DGX)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,199,000 | 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 | 5,037,000 | 5,008,000 | 4,966,000 | 4,944,000 |
| 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 (ttm) ÷ Payables
= $6,199,000K ÷ $378,000K
= 16.40
Based on the available data, Quest Diagnostics, Inc.'s payables turnover ratio for Q4 2023 is 16.40. This indicates that the company is able to convert its accounts payables into cash or inventory 16.40 times during the fourth quarter of 2023.
Unfortunately, without data for the other quarters of 2023, it is challenging to provide a trend analysis. However, comparing the Q4 2023 payables turnover of 16.40 to the Q4 2022 payables turnover of 19.91 suggests a decrease in efficiency in managing payables during this particular period.
A higher payables turnover ratio is generally preferred, as it indicates that the company is paying its suppliers more frequently. A declining trend in the payables turnover ratio could imply potential liquidity issues or changes in payment terms with suppliers that may need further investigation.
Peer comparison
Dec 31, 2023