Quest Diagnostics Incorporated (DGX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 854,000 | 946,000 | 1,995,000 | 1,431,000 | 858,000 |
| Total assets | US$ in thousands | 14,022,000 | 12,837,000 | 13,611,000 | 14,026,000 | 12,843,000 |
| ROA | 6.09% | 7.37% | 14.66% | 10.20% | 6.68% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $854,000K ÷ $14,022,000K
= 6.09%
Quest Diagnostics, Inc.'s return on assets (ROA) has shown fluctuations over the past five years. In 2021, the ROA peaked at 14.61%, indicating that the company generated $0.1461 in net income for every dollar of assets held during that period. This substantial increase in ROA could suggest improved operational efficiency or a more effective asset utilization strategy.
However, in subsequent years, the ROA declined to 10.16% in 2020, 7.34% in 2022, and then further to 6.06% in 2023. These decreases may imply challenges in maintaining or enhancing profitability relative to the size of the asset base.
Overall, the trend in ROA for Quest Diagnostics, Inc. indicates a mix of performance levels over the years, with the company experiencing both highs and lows in terms of generating profits from its assets. Further analysis and investigation into the company's financial and operational strategies may be warranted to understand the factors influencing these fluctuations in ROA.
Peer comparison
Dec 31, 2023