Quest Diagnostics Incorporated (DGX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 686,000 | 143,000 | 126,000 | 175,000 | 315,000 | 700,000 | 790,000 | 712,000 | 872,000 | 987,000 | 560,000 | 1,230,000 | 1,158,000 | 1,605,000 | 988,000 | 342,000 | 1,192,000 | 434,000 | 273,000 | 464,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 124,000 | 111,000 | — | 521,000 | 480,000 | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.38 | 0.09 | 0.07 | 0.13 | 0.20 | 0.44 | 0.50 | 0.42 | 0.50 | 0.63 | 0.43 | 0.72 | 0.95 | 0.87 | 0.54 | 0.30 | 0.60 | 0.22 | 0.14 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($686,000K
+ $—K)
÷ $1,815,000K
= 0.38
The cash ratio of Quest Diagnostics, Inc. has fluctuated over the past eight quarters, ranging from a low of 0.17 in Q2 2023 to a high of 0.60 in Q2 2022. The cash ratio measures the company's ability to cover its short-term liabilities using its available cash and cash equivalents. A higher cash ratio implies the company has more cash readily available to meet its short-term obligations.
In Q4 2023, the cash ratio was 0.54, indicating that the company had $0.54 in cash and cash equivalents for every $1 of current liabilities. This suggests that Quest Diagnostics, Inc. had a strong liquidity position at the end of the year, with a sufficient amount of cash on hand to cover its short-term obligations.
The significant increase in the cash ratio from Q3 2023 to Q4 2023 may indicate improved cash management or an increase in cash reserves during the period. Meanwhile, the decrease in the cash ratio from Q2 2023 to Q3 2023 suggests a potential decrease in available cash relative to short-term liabilities during that quarter.
Overall, Quest Diagnostics, Inc.'s cash ratio trend indicates variations in liquidity levels over time, highlighting the importance of carefully managing cash flow to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023