Quest Diagnostics Incorporated (DGX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,392,000 | 2,372,000 | 1,898,000 | 2,741,000 | 3,058,000 |
| Total current liabilities | US$ in thousands | 2,169,000 | 1,815,000 | 1,551,000 | 1,753,000 | 1,776,000 |
| Current ratio | 1.10 | 1.31 | 1.22 | 1.56 | 1.72 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,392,000K ÷ $2,169,000K
= 1.10
Based on the provided data, the current ratio of Quest Diagnostics Incorporated has displayed a fluctuating trend over the past five years. The current ratio stood at 1.72 as of December 31, 2020, indicating the company had $1.72 in current assets for every $1 in current liabilities. Subsequently, the ratio declined to 1.56 by December 31, 2021, suggesting a slight decrease in liquidity.
By December 31, 2022, the current ratio further decreased to 1.22, which may raise concerns regarding the company's ability to cover its short-term obligations with its current assets. However, the ratio showed a slight improvement to 1.31 by December 31, 2023.
Notably, by the end of the most recent period on December 31, 2024, the current ratio dropped to 1.10, signaling a potential liquidity challenge for Quest Diagnostics. It is important for stakeholders to monitor this ratio closely as it indicates the company's ability to meet its short-term financial obligations with its current resources.
Peer comparison
Dec 31, 2024