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