Quest Diagnostics Incorporated (DGX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,262,000 | 1,130,000 | 1,180,000 | 1,220,000 | 1,428,000 | 1,829,000 | 2,089,000 | 2,234,000 | 2,381,000 | 2,640,000 | 2,706,000 | 2,456,000 | 1,971,000 | 1,539,000 | 1,134,000 | 1,158,000 | 1,231,000 | 1,088,000 | 1,079,000 | 1,077,000 |
| Total assets | US$ in thousands | 14,022,000 | 13,482,000 | 13,425,000 | 12,794,000 | 12,837,000 | 13,223,000 | 13,312,000 | 13,442,000 | 13,611,000 | 13,572,000 | 12,861,000 | 13,931,000 | 14,026,000 | 14,143,000 | 12,990,000 | 12,049,000 | 12,843,000 | 12,019,000 | 11,760,000 | 11,937,000 |
| Operating ROA | 9.00% | 8.38% | 8.79% | 9.54% | 11.12% | 13.83% | 15.69% | 16.62% | 17.49% | 19.45% | 21.04% | 17.63% | 14.05% | 10.88% | 8.73% | 9.61% | 9.58% | 9.05% | 9.18% | 9.02% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,262,000K ÷ $14,022,000K
= 9.00%
Quest Diagnostics, Inc.'s operating return on assets (operating ROA) has exhibited a decreasing trend over the past eight quarters. The operating ROA decreased from 16.60% in Q1 2022 to 9.29% in Q4 2023, indicating a decline in the company's efficiency in generating operating income from its assets during this period. It is worth noting that the operating ROA peaked at 15.73% in Q2 2022 before starting to decline consistently. This decreasing trend suggests that Quest Diagnostics may be facing challenges in maximizing profitability relative to its asset base, which could be a cause for concern for investors and stakeholders. Further analysis of the company's operational efficiency and asset management strategies may be necessary to identify the underlying factors contributing to this decline in operating ROA.
Peer comparison
Dec 31, 2023