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

Company name
Symbol
Working capital turnover
Quest Diagnostics Incorporated
DGX
16.34
Fulgent Genetics Inc
FLGT
0.67
Laboratory Corporation of America Holdings
LH
23.88
RadNet Inc
RDNT
11.40