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

Company name
Symbol
Receivables turnover
Quest Diagnostics Incorporated
DGX
7.52
Fulgent Genetics Inc
FLGT
5.51
Laboratory Corporation of America Holdings
LH
6.77
RadNet Inc
RDNT
9.88