Quest Diagnostics Incorporated (DGX)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,175,000 | 1,130,000 | 1,235,000 | 2,599,000 | 1,884,000 |
| Revenue | US$ in thousands | 9,872,000 | 9,252,000 | 9,883,000 | 10,788,000 | 9,437,000 |
| Pretax margin | 11.90% | 12.21% | 12.50% | 24.09% | 19.96% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,175,000K ÷ $9,872,000K
= 11.90%
The pretax margin of Quest Diagnostics Incorporated has shown fluctuations over the past five years. In 2020, the pretax margin stood at 19.96%, indicating that for every dollar of revenue generated, the company retained approximately 19.96 cents before accounting for income taxes.
There was an improvement in 2021, with the pretax margin increasing to 24.09%, suggesting better cost management or potentially higher revenues relative to costs. However, this positive trend reversed in the following years. The margin notably decreased to 12.50% in 2022, and further declined to 12.21% in 2023, before reaching 11.90% by the end of 2024.
These declining pretax margins in 2022, 2023, and 2024 could indicate challenges in controlling costs, pricing pressures, or other factors impacting the company's profitability. It would be important for Quest Diagnostics to closely monitor its cost structure and revenue generation strategies to ensure sustainable profitability and long-term growth.
Peer comparison
Dec 31, 2024