Quest Diagnostics Incorporated (DGX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,372,000 | 1,898,000 | 2,741,000 | 3,058,000 | 2,490,000 |
| Total current liabilities | US$ in thousands | 1,815,000 | 1,551,000 | 1,753,000 | 1,776,000 | 1,990,000 |
| Current ratio | 1.31 | 1.22 | 1.56 | 1.72 | 1.25 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,372,000K ÷ $1,815,000K
= 1.31
The current ratio measures Quest Diagnostics, Inc.'s ability to meet its short-term obligations using its current assets. A higher current ratio indicates a stronger ability to cover current liabilities.
Analyzing the trend of Quest Diagnostics' current ratio from 2019 to 2023, we observe fluctuations. In 2019, the company had a current ratio of 1.25, which improved to 1.72 in 2020, signaling a substantial increase in liquidity. However, the ratio decreased to 1.56 in 2021, followed by a further decline to 1.22 in 2022. This downward trend may suggest potential liquidity challenges or inefficiencies in managing short-term obligations during those years.
The current ratio rebounded to 1.31 in 2023, indicating a modest improvement in the company's ability to cover its short-term liabilities compared to the previous year. However, the current ratio remains below the 2020 level, indicating that Quest Diagnostics might still have room to enhance its short-term liquidity position further.
Overall, while the current ratio of Quest Diagnostics has shown fluctuations over the years, it is essential for stakeholders to monitor the ratio closely to assess the company's short-term liquidity position and financial health effectively.
Peer comparison
Dec 31, 2023