Quest Diagnostics Incorporated (DGX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 686,000 | 315,000 | 872,000 | 1,158,000 | 1,192,000 |
| Short-term investments | US$ in thousands | — | — | 44,000 | 521,000 | — |
| Receivables | US$ in thousands | 1,210,000 | 1,195,000 | 1,438,000 | 1,520,000 | 1,063,000 |
| Total current liabilities | US$ in thousands | 1,815,000 | 1,551,000 | 1,753,000 | 1,776,000 | 1,990,000 |
| Quick ratio | 1.04 | 0.97 | 1.34 | 1.80 | 1.13 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($686,000K
+ $—K
+ $1,210,000K)
÷ $1,815,000K
= 1.04
The quick ratio of Quest Diagnostics, Inc. has fluctuated over the past five years. In 2023, the quick ratio improved to 1.20 from 1.10 in 2022. This indicates the company's ability to meet its short-term liabilities with its most liquid assets also improved in 2023. However, it is important to note that the quick ratio is still lower than the levels seen in 2020 and 2021 when it was 1.60 and 1.44 respectively, suggesting a potential decrease in liquidity compared to those periods. Overall, while the current quick ratio of 1.20 is above 1, indicating that Quest Diagnostics, Inc. still has an acceptable level of liquidity to cover its short-term obligations, monitoring future trends in this ratio is advisable to assess the company's liquidity position effectively.
Peer comparison
Dec 31, 2023