Quest Diagnostics Incorporated (DGX)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,901,000 | 3,295,000 | 4,049,000 | 3,633,000 | 2,689,000 |
| Revenue | US$ in thousands | 9,100,000 | 9,745,000 | 10,628,000 | 9,437,000 | 7,726,000 |
| Gross profit margin | 31.88% | 33.81% | 38.10% | 38.50% | 34.80% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,901,000K ÷ $9,100,000K
= 31.88%
Quest Diagnostics, Inc.'s gross profit margin has shown a decreasing trend from 2019 to 2023. In 2019, the gross profit margin was 34.80%, which decreased slightly to 34.74% in 2020. However, a more significant decline was observed in 2021, where the gross profit margin dropped to 39.02%. This downward trend continued in the following years, with a further decrease to 38.50% in 2022 and a lowest value of 33.00% in 2023.
The declining gross profit margin indicates that Quest Diagnostics may be facing challenges in maintaining profitability on its sales. Factors such as increased cost of goods sold, pricing pressure, or inefficiencies in production and distribution processes could be contributing to this trend. It is important for the company to closely monitor its cost structure and pricing strategies to improve its gross profit margin and overall financial performance in the future.
Peer comparison
Dec 31, 2023