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