Quest Diagnostics Incorporated (DGX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 549,000 | 686,000 | 315,000 | 872,000 | 1,158,000 |
| Short-term investments | US$ in thousands | — | — | — | 44,000 | 521,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,169,000 | 1,815,000 | 1,551,000 | 1,753,000 | 1,776,000 |
| Quick ratio | 0.25 | 0.38 | 0.20 | 0.52 | 0.95 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($549,000K
+ $—K
+ $—K)
÷ $2,169,000K
= 0.25
The quick ratio of Quest Diagnostics Incorporated has shown a declining trend over the past five years, decreasing from 0.95 as of December 31, 2020, to 0.25 as of December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current liquid assets alone.
In 2021, the quick ratio declined significantly to 0.52, which could signal potential liquidity challenges. However, there was a slight improvement in 2023 to 0.38, suggesting a partial recovery. The quick ratio fell again in 2024 to 0.25, indicating a potential strain on the company's short-term liquidity position.
Overall, the downward trend in Quest Diagnostics' quick ratio suggests a weakening ability to cover its short-term obligations with its liquid assets. This may raise concerns about the company's liquidity management and ability to meet its financial obligations in the short term. Further investigation into the company's liquidity position and cash flow management may be warranted to mitigate potential liquidity risks.
Peer comparison
Dec 31, 2024