Quest Diagnostics Incorporated (DGX)
Working capital 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 |
| Total current assets | US$ in thousands | 2,372,000 | 1,898,000 | 2,741,000 | 3,058,000 | 2,490,000 |
| Total current liabilities | US$ in thousands | 1,815,000 | 1,551,000 | 1,753,000 | 1,776,000 | 1,990,000 |
| Working capital turnover | 16.34 | 28.08 | 10.76 | 7.36 | 15.45 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,100,000K ÷ ($2,372,000K – $1,815,000K)
= 16.34
Quest Diagnostics, Inc.'s working capital turnover has varied significantly over the past five years. The ratio indicates the efficiency of the company in generating revenue from its working capital. A higher turnover ratio suggests that Quest Diagnostics is able to efficiently utilize its working capital to generate sales.
In 2023, the working capital turnover decreased to 16.61 from 28.48 in 2022, indicating a slight decline in efficiency in utilizing working capital to generate revenue. However, the ratio is still relatively high compared to earlier years, suggesting that Quest Diagnostics is still operating efficiently.
The significant increase in 2022 from 2021 indicates a substantial improvement in utilizing working capital to generate revenue. The sharp increase in efficiency suggests that the company implemented better working capital management strategies during this period.
In 2021 and 2020, the working capital turnover ratios were relatively lower, indicating lower efficiency in using working capital to generate revenue. This may suggest inefficiencies in managing working capital or changes in business operations during these years.
Overall, Quest Diagnostics, Inc. has shown fluctuations in its working capital turnover over the past five years, with some years indicating higher efficiency than others. Analyzing the trends in this ratio can provide insights into the company's operational performance and effectiveness in managing its working capital.
Peer comparison
Dec 31, 2023