Quest Diagnostics Incorporated (DGX)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 44.27 | 17.96 | 1,869.20 | — | 16.61 | 47.19 | — | 20.92 | 28.48 | 14.06 | 12.46 | 13.78 | 10.92 | 10.09 | 18.58 | 8.00 | 7.36 | 8.72 | 14.02 | 17.77 |
Quest Diagnostics Incorporated has shown a consistent improvement in its inventory turnover ratio over the years, indicating that the company is able to sell its inventory more efficiently. The inventory turnover ratio increased from 40.18 in March 2020 to 35.49 in December 2024, suggesting better management of inventory levels.
On the other hand, the receivables turnover and payables turnover ratios were not provided in the data, making it difficult to assess the efficiency of Quest Diagnostics in collecting receivables and managing its payables.
The working capital turnover ratio reflects how effectively the company is using its working capital to generate sales. Quest Diagnostics saw fluctuations in this ratio over the years, with a significant increase in December 2022 and June 2024. The sharp increase in June 2024 to 1,869.20 indicates a potential anomaly or error in the data provided and should be reviewed for accuracy.
Overall, Quest Diagnostics has shown positive trends in inventory turnover and working capital turnover, which are important indicators of operational efficiency and financial health.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.28 | 10.40 | 10.51 | 10.58 | 11.19 | 10.79 | 10.66 | 10.90 | 10.87 | 10.13 | 10.27 | 10.90 | 11.54 | 11.35 | 11.17 | 13.21 | 14.02 | 14.03 | 11.20 | 9.08 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Quest Diagnostics Incorporated's inventory management can be evaluated using the Days of Inventory on Hand (DOH) ratio, which measures how many days it takes for the company to sell its average inventory. The trend in Quest Diagnostics' DOH ratio shows some fluctuations during the period from March 31, 2020, to December 31, 2024. The ratio ranged from a low of 9.08 days on March 31, 2020, to a high of 14.03 days on September 30, 2020. Over the years, the DOH ratio generally decreased, indicating an improvement in inventory turnover efficiency. As of December 31, 2024, the company had 10.28 days of inventory on hand.
Additionally, the Days of Sales Outstanding (DSO) ratio, which measures the average number of days it takes for a company to collect revenue after making a sale, was not available for the specified periods. This lack of data limits our ability to assess Quest Diagnostics' effectiveness in collecting receivables promptly.
Furthermore, the data does not provide information on the Number of Days of Payables, which would have been useful in evaluating the company's payment practices and liquidity management.
In conclusion, although Quest Diagnostics' inventory management efficiency has shown improvement over the years based on the decreasing trend in the DOH ratio, a more comprehensive analysis of the company's activity ratios would require additional information on its DSO and payables turnover.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 3.81 | 3.91 | 5.35 | 4.20 | 4.45 | 4.68 | 6.40 | 4.68 | 4.95 | 5.00 | 6.36 | 5.80 | 5.42 | 5.00 | 5.24 |
| Total asset turnover | 0.61 | 0.59 | 0.67 | 0.67 | 0.66 | 0.69 | 0.71 | 0.75 | 0.77 | 0.78 | 0.79 | 0.79 | 0.79 | 0.81 | 0.86 | 0.74 | 0.67 | 0.59 | 0.58 | 0.64 |
Quest Diagnostics Incorporated's long-term activity ratios indicate how efficiently the company is utilizing its assets to generate revenue.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how well the company generates sales from its investment in fixed assets.
- The trend for Quest Diagnostics shows fluctuations in the ratio over the years, ranging from a high of 6.40 to a low of 3.81.
- An increasing trend in fixed asset turnover generally suggests improved efficiency in utilizing fixed assets to generate sales.
- However, the decreasing trend from March 31, 2023, to June 30, 2023, followed by a plateauing trend until December 31, 2023, may indicate potential inefficiencies in asset utilization during that period.
- The ratios for the fourth quarter of 2023 and beyond are not available, which limits the ability to assess the current status of fixed asset turnover.
2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively the company is using all its assets to generate sales.
- Quest Diagnostics' total asset turnover ratio fluctuated between 0.58 and 0.86 during the observed period, indicating variability in asset utilization efficiency.
- The ratios generally show a stable performance with minor fluctuations, suggesting relatively consistent efficiency in generating sales from total assets.
- The ratio peaked at 0.86 on June 30, 2021, indicating a period of high efficiency in asset turnover.
- The ratios for the last two quarters of 2024 showed a slight decrease compared to previous periods, which could indicate a potential dip in efficiency in utilizing total assets.
In conclusion, Quest Diagnostics Incorporated has exhibited varying levels of efficiency in utilizing both fixed and total assets to generate sales over the analyzed period. Further monitoring of these ratios will be beneficial to assess the company's ongoing operational efficiency and asset management practices.