Quest Diagnostics Incorporated (DGX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 31.88% | 32.02% | 32.64% | 32.78% | 33.81% | 34.99% | 36.26% | 37.27% | 38.10% | 39.68% | 40.78% | 40.18% | 38.50% | 36.19% | 33.36% | 33.88% | 34.80% | 34.44% | 34.42% | 34.41% |
| Operating profit margin | 13.87% | 12.35% | 12.62% | 12.89% | 14.65% | 18.03% | 20.04% | 21.24% | 22.40% | 24.15% | 24.64% | 23.85% | 20.89% | 18.41% | 15.06% | 15.12% | 15.93% | 14.24% | 14.25% | 14.29% |
| Pretax margin | 12.11% | 10.56% | 10.81% | 10.69% | 12.42% | 15.94% | 18.59% | 23.15% | 24.39% | 26.14% | 26.82% | 23.19% | 20.04% | 17.29% | 12.99% | 13.27% | 14.30% | 12.40% | 12.30% | 11.98% |
| Net profit margin | 9.38% | 8.34% | 8.49% | 8.38% | 9.71% | 12.18% | 14.24% | 17.88% | 18.77% | 19.98% | 20.46% | 17.49% | 15.16% | 13.22% | 9.99% | 10.36% | 11.11% | 9.58% | 9.64% | 9.59% |
Quest Diagnostics, Inc. has exhibited a consistent downward trend in its profitability ratios over the last eight quarters. The gross profit margin has decreased from 38.21% in Q1 2022 to 33.00% in Q4 2023. This downward trend indicates decreasing efficiency in controlling the direct costs of goods sold.
Similarly, the operating profit margin has declined from 20.90% in Q1 2022 to 14.08% in Q4 2023. This decrease indicates that Quest Diagnostics, Inc. has become less efficient in managing its operating expenses over time.
The pretax margin has also shown a decreasing trend from 23.57% in Q1 2022 to 12.49% in Q4 2023. This trend suggests a reduction in profitability before accounting for taxes, reflecting challenges in generating income from core business operations.
Lastly, the net profit margin has decreased from 17.55% in Q1 2022 to 9.19% in Q4 2023. This decline indicates a decreasing bottom-line profitability after accounting for all expenses, including taxes. Overall, the decreasing trend in profitability ratios for Quest Diagnostics, Inc. raises concerns about its overall financial performance and efficiency in recent quarters.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.09% | 5.66% | 5.91% | 6.20% | 7.37% | 9.34% | 11.15% | 13.99% | 14.66% | 16.09% | 17.47% | 12.93% | 10.20% | 7.81% | 5.79% | 6.58% | 6.68% | 6.09% | 6.21% | 6.06% |
| Return on total capital | 11.80% | 17.43% | 18.56% | 19.17% | 13.76% | 28.34% | 32.58% | 40.55% | 26.25% | 47.12% | 52.60% | 37.81% | 19.10% | 15.51% | 11.68% | 12.31% | 13.38% | 12.81% | 12.83% | 12.78% |
| Return on equity (ROE) | 13.54% | 11.88% | 12.71% | 13.11% | 16.05% | 19.81% | 23.15% | 29.50% | 30.96% | 34.17% | 38.09% | 26.70% | 21.17% | 17.27% | 12.90% | 14.02% | 15.21% | 13.06% | 13.37% | 13.67% |
Quest Diagnostics, Inc. has shown a consistent decline in profitability ratios over the past eight quarters. The operating return on assets (Operating ROA) has decreased from 16.60% in Q1 2022 to 9.29% in Q4 2023. This trend indicates a lower efficiency in generating operating income from its assets.
The Return on Assets (ROA) has also exhibited a downward trajectory, dropping from 13.94% in Q1 2022 to 6.06% in Q4 2023. This suggests a decline in the company's ability to generate profits relative to its total assets.
Moreover, the Return on Total Capital has decreased from 22.44% in Q1 2022 to 11.92% in Q4 2023, indicating a reduction in profitability concerning the total capital employed in the business.
The Return on Equity (ROE) has experienced a similar trend, diminishing from 29.39% in Q1 2022 to 13.48% in Q4 2023, reflecting a decrease in the return earned on the shareholder's equity investments.
Overall, the declining profitability ratios of Quest Diagnostics, Inc. signal potential challenges in maintaining its historical levels of profitability and may require further analysis to understand the underlying causes and develop strategies for improvement.