Quest Diagnostics Incorporated (DGX)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.28 | 10.40 | 10.51 | 10.58 | 11.19 | 10.79 | 10.66 | 10.90 | 10.87 | 10.13 | 10.27 | 10.90 | 11.54 | 11.35 | 11.17 | 13.21 | 14.02 | 14.03 | 11.20 | 9.08 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 10.28 | 10.40 | 10.51 | 10.58 | 11.19 | 10.79 | 10.66 | 10.90 | 10.87 | 10.13 | 10.27 | 10.90 | 11.54 | 11.35 | 11.17 | 13.21 | 14.02 | 14.03 | 11.20 | 9.08 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.28 + — – —
= 10.28
Quest Diagnostics Incorporated has shown a relatively stable cash conversion cycle over the past few years, with fluctuations within a narrow range. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 9.08 days to a high of 14.03 days. The company improved its cycle efficiency over time, as indicated by the decreasing trend observed in the latter half of this period.
As of December 31, 2024, the cash conversion cycle stood at 10.28 days. This suggests that Quest Diagnostics Incorporated takes approximately 10.28 days to convert its investments in inventory and accounts receivable into cash. A lower number indicates a more efficient cash management process, implying quicker monetization of assets.
Overall, the trend of decreasing days in the cash conversion cycle is a positive sign for Quest Diagnostics Incorporated, as it may indicate improved operational efficiency and effective management of working capital.
Peer comparison
Dec 31, 2024