Quest Diagnostics Incorporated (DGX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 16,153,000 | 14,022,000 | 12,837,000 | 13,611,000 | 14,026,000 |
| Operating ROA | 8.33% | 9.00% | 11.12% | 17.49% | 14.05% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,346,000K ÷ $16,153,000K
= 8.33%
Quest Diagnostics Incorporated has shown a varying trend in its operating return on assets (operating ROA) over the past five years. In December 2020, the operating ROA was at 14.05%, indicating that the company generated $0.1405 in operating income for every $1 of assets employed.
The operating ROA improved in December 2021 to 17.49%, which suggests increased efficiency in utilizing assets to generate operating income. However, in December 2022, there was a decline in operating ROA to 11.12%, indicating a decrease in the company's ability to generate operating income from its assets compared to the previous year.
The trend continued with a further decrease in December 2023, where the operating ROA dropped to 9.00%. This could be a concerning sign, as it shows a continued decline in the company's operational efficiency.
By December 2024, the operating ROA decreased even further to 8.33%, indicating a significant drop in the company's ability to generate operating income from its assets compared to the previous year. This declining trend in operating ROA over the five-year period may suggest challenges in managing costs, optimizing asset utilization, or generating sufficient operating income.
Further analysis would be necessary to understand the underlying factors contributing to these changes and to determine the effectiveness of Quest Diagnostics Incorporated in utilizing its assets to generate operating income.
Peer comparison
Dec 31, 2024