Quest Diagnostics Incorporated (DGX)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,100,000 | 9,153,000 | 9,351,000 | 9,467,000 | 9,745,000 | 10,142,000 | 10,425,000 | 10,520,000 | 10,628,000 | 10,932,000 | 10,982,000 | 10,297,000 | 9,437,000 | 8,361,000 | 7,531,000 | 7,657,000 | 7,726,000 | 7,639,000 | 7,572,000 | 7,538,000 |
| Receivables | US$ in thousands | 1,210,000 | 1,281,000 | 1,235,000 | 1,254,000 | 1,195,000 | 1,280,000 | 1,293,000 | 1,371,000 | 1,438,000 | 1,473,000 | 1,255,000 | 1,382,000 | 1,520,000 | 1,421,000 | 1,126,000 | 972,000 | 1,063,000 | 1,117,000 | 1,088,000 | 1,079,000 |
| Receivables turnover | 7.52 | 7.15 | 7.57 | 7.55 | 8.15 | 7.92 | 8.06 | 7.67 | 7.39 | 7.42 | 8.75 | 7.45 | 6.21 | 5.88 | 6.69 | 7.88 | 7.27 | 6.84 | 6.96 | 6.99 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,100,000K ÷ $1,210,000K
= 7.52
Quest Diagnostics, Inc.'s receivables turnover ratio has shown some fluctuations over the past eight quarters. The company's receivables turnover ratio ranged from 7.26 to 8.27 during this period. A higher receivables turnover ratio indicates that the company is efficient in collecting payments from its customers.
The average receivables turnover ratio for Quest Diagnostics, Inc. over the past eight quarters is approximately 7.86. This suggests that, on average, the company collects its accounts receivable around 7.86 times per year.
The declining trend in the receivables turnover ratio in recent quarters may indicate potential issues with the company's accounts receivable management or collection process. However, it is important to consider industry benchmarks and seasonal variations when evaluating the effectiveness of Quest Diagnostics, Inc.'s accounts receivable turnover.
Further analysis of the company's accounts receivable aging schedule and collection policies may provide additional insights into the efficiency and effectiveness of its receivables management.
Peer comparison
Dec 31, 2023