Quest Diagnostics Incorporated (DGX)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,346,000 | 1,262,000 | 1,428,000 | 2,381,000 | 1,971,000 |
| Revenue | US$ in thousands | 9,872,000 | 9,252,000 | 9,883,000 | 10,788,000 | 9,437,000 |
| Operating profit margin | 13.63% | 13.64% | 14.45% | 22.07% | 20.89% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,346,000K ÷ $9,872,000K
= 13.63%
Quest Diagnostics Incorporated's operating profit margin has shown variability over the past five years. The margin increased from 20.89% in December 2020 to 22.07% in December 2021, reflecting improved profitability. However, there was a noticeable decline in the margin in the subsequent years, with figures dropping to 14.45% in December 2022, 13.64% in December 2023, and remaining stable at 13.63% in December 2024.
The decreasing trend from 2021 to 2024 indicates challenges in maintaining or enhancing operational efficiency and controlling costs relative to revenue. This decline may prompt further analysis into the company's cost structures, pricing strategies, and overall operational effectiveness. Management should carefully assess factors impacting the operating profit margin to identify opportunities for improvement and maintain sustainable profitability in the future.
Peer comparison
Dec 31, 2024