Quest Diagnostics Incorporated (DGX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,262,000 | 1,428,000 | 2,381,000 | 1,971,000 | 1,231,000 |
| Total assets | US$ in thousands | 14,022,000 | 12,837,000 | 13,611,000 | 14,026,000 | 12,843,000 |
| Operating ROA | 9.00% | 11.12% | 17.49% | 14.05% | 9.58% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,262,000K ÷ $14,022,000K
= 9.00%
Quest Diagnostics, Inc.'s operating return on assets (operating ROA) has shown some fluctuations over the past five years. The measure was highest in 2021 at 17.48% and lowest in 2019 at 8.85%. The downward trend continued in 2023, where the operating ROA decreased to 9.29% from 11.21% in 2022.
The operating ROA indicates the company's efficiency in generating profits from its assets used in operations. A decreasing trend in this ratio could indicate declining efficiency in utilizing assets to generate earnings. However, it is essential to consider other factors such as industry dynamics and company strategies that may influence the ratio.
Overall, Quest Diagnostics, Inc. should closely monitor its operating ROA to ensure optimal utilization of its assets and seek improvements if needed to enhance profitability in the future.
Peer comparison
Dec 31, 2023