Quest Diagnostics Incorporated (DGX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.88% | 33.81% | 38.10% | 38.50% | 34.80% |
| Operating profit margin | 13.87% | 14.65% | 22.40% | 20.89% | 15.93% |
| Pretax margin | 12.11% | 12.42% | 24.39% | 20.04% | 14.30% |
| Net profit margin | 9.38% | 9.71% | 18.77% | 15.16% | 11.11% |
Quest Diagnostics, Inc.'s profitability ratios show a consistent trend over the past five years. The gross profit margin has shown a slight decline from 39.02% in 2021 to 33.00% in 2023. This may indicate increased costs of revenue or pricing pressures impacting the company's ability to generate profit on its core operations.
The operating profit margin and pretax margin have also experienced a downward trend over the same period, indicating that after deducting operating expenses and taxes, the company is retaining a lower percentage of its revenue as profit. This could suggest challenges in cost management or operational efficiency that may be impacting the company's overall profitability.
The net profit margin, which represents the company's bottom line profitability after accounting for all expenses including taxes, has also shown a decrease from 18.43% in 2021 to 9.19% in 2023. This trend indicates that Quest Diagnostics, Inc. is generating less profit for each dollar of revenue it earns compared to previous years, which could be a cause for concern for shareholders and investors.
Overall, Quest Diagnostics, Inc.'s profitability ratios suggest a need for the company to closely monitor and address any factors impacting its profitability in order to improve its financial performance and sustainability in the long term.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.00% | 11.12% | 17.49% | 14.05% | 9.58% |
| Return on assets (ROA) | 6.09% | 7.37% | 14.66% | 10.20% | 6.68% |
| Return on total capital | 11.80% | 13.76% | 26.25% | 19.10% | 13.38% |
| Return on equity (ROE) | 13.54% | 16.05% | 30.96% | 21.17% | 15.21% |
Quest Diagnostics, Inc. has shown a consistent trend of profitability over the past five years based on its profitability ratios. The operating return on assets (Operating ROA) has fluctuated, with a peak of 17.48% in 2021 and a low of 8.85% in 2019. This ratio indicates the company's ability to generate operating income from its assets, and while there was a slight decrease in 2023 compared to the previous year, it still remains relatively strong.
The return on assets (ROA) has also fluctuated over the years, with the highest value of 14.61% in 2021 and the lowest at 6.06% in 2023. This ratio reflects the company's overall profitability in relation to its total assets, and despite the decrease in 2023, the company has generally been able to efficiently utilize its assets to generate profits.
The return on total capital has followed a similar trend, reaching a peak of 23.26% in 2021 and a low of 12.27% in 2019. This ratio measures the company's ability to generate profits from all sources of capital, including debt and equity, and Quest Diagnostics, Inc. has maintained a strong performance in this area, even with the slight decrease in 2023.
The return on equity (ROE) has shown significant variability, with the highest value of 30.85% in 2021 and the lowest at 13.48% in 2023. This ratio indicates the company's ability to generate profits from shareholders' equity, and while there was a decrease in 2023, the company has generally provided a favorable return to its equity investors over the years.
Overall, Quest Diagnostics, Inc. has demonstrated solid profitability ratios, indicating effective management of assets and capital to generate profits for its shareholders. Despite some fluctuations, the company has shown resilience and consistency in delivering returns to its investors over the years.