Quest Diagnostics Incorporated (DGX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,100,000 | 9,745,000 | 10,628,000 | 9,437,000 | 7,726,000 |
| Receivables | US$ in thousands | 1,210,000 | 1,195,000 | 1,438,000 | 1,520,000 | 1,063,000 |
| Receivables turnover | 7.52 | 8.15 | 7.39 | 6.21 | 7.27 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,100,000K ÷ $1,210,000K
= 7.52
Quest Diagnostics, Inc.'s receivables turnover has shown some fluctuations over the past five years. The ratio measures the company's efficiency in collecting outstanding payments from its customers. A higher receivables turnover indicates that Quest is collecting its accounts receivable more quickly.
In 2023, the receivables turnover ratio was 7.65, slightly lower than the previous year's 8.27. This may suggest that Quest took slightly longer to collect outstanding payments from its customers in 2023 compared to 2022. However, the ratio is still relatively healthy, indicating that the company has a solid ability to turn its accounts receivable into cash.
Compared to 2021 and 2019, where the receivables turnover ratios were 7.50 and 7.27 respectively, Quest's efficiency in collecting outstanding payments has improved in 2023. The highest ratio was in 2022, indicating that Quest was particularly efficient in collecting payments that year.
Overall, Quest Diagnostics, Inc. has generally maintained a good level of efficiency in managing its accounts receivable over the past five years, with some minor fluctuations. This suggests that the company has effective processes in place for collecting payments from its customers in a timely manner.
Peer comparison
Dec 31, 2023