Quest Diagnostics Incorporated (DGX)
Working capital 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 |
| Total current assets | US$ in thousands | 2,372,000 | 1,815,000 | 1,733,000 | 1,814,000 | 1,898,000 | 2,334,000 | 2,426,000 | 2,475,000 | 2,741,000 | 2,854,000 | 2,146,000 | 2,999,000 | 3,058,000 | 3,348,000 | 2,380,000 | 1,560,000 | 2,490,000 | 1,779,000 | 1,566,000 | 1,778,000 |
| Total current liabilities | US$ in thousands | 1,815,000 | 1,618,000 | 1,875,000 | 1,355,000 | 1,551,000 | 1,602,000 | 1,577,000 | 1,700,000 | 1,753,000 | 1,759,000 | 1,551,000 | 1,707,000 | 1,776,000 | 2,389,000 | 1,843,000 | 1,129,000 | 1,990,000 | 2,011,000 | 1,904,000 | 2,282,000 |
| Working capital turnover | 16.34 | 46.46 | — | 20.63 | 28.08 | 13.86 | 12.28 | 13.57 | 10.76 | 9.98 | 18.46 | 7.97 | 7.36 | 8.72 | 14.02 | 17.77 | 15.45 | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,100,000K ÷ ($2,372,000K – $1,815,000K)
= 16.34
Quest Diagnostics' working capital turnover has exhibited significant fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates better utilization of working capital.
In Q2 2023, there is missing data denoted by "—", which could possibly be due to various factors such as changes in operations, reporting adjustments, or data unavailability.
The highest working capital turnover ratio was observed in Q3 2023 at 47.19, indicating a substantial improvement in the efficiency of working capital utilization during that quarter. This could signify effective management of current assets and liabilities to generate sales.
Conversely, the lowest working capital turnover ratio was in Q2 2022 at 12.46, suggesting relatively lower efficiency in working capital management during that period.
Overall, the fluctuating trend in working capital turnover ratios for Quest Diagnostics indicates varying levels of efficiency in managing working capital over the analyzed quarters. Further analysis and comparison with industry benchmarks could provide valuable insights into the company's financial performance and liquidity management.
Peer comparison
Dec 31, 2023