Quest Diagnostics Incorporated (DGX)

Return on assets (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
Net income (ttm) US$ in thousands 854,000 763,000 794,000 793,000 946,000 1,235,000 1,484,000 1,881,000 1,995,000 2,184,000 2,247,000 1,801,000 1,431,000 1,105,000 752,000 793,000 858,000 732,000 730,000 723,000
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
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $854,000K ÷ $14,022,000K
= 6.09%

Quest Diagnostics, Inc.'s return on assets (ROA) has exhibited a declining trend over the past eight quarters, with values decreasing from 13.94% in Q1 2022 to 6.06% in Q4 2023. This indicates that the company's ability to generate profits from its assets has been weakening. The most considerable drop appears between Q1 2022 and Q2 2022 when ROA fell from 13.94% to 11.11%. Subsequently, there has been a relatively consistent decrease in ROA in the following quarters.

The figures suggest that Quest Diagnostics, Inc. may be facing challenges in efficiently utilizing its assets to generate profits. Management should investigate the underlying reasons for the declining ROA, as it is a critical metric for assessing operational efficiency and financial performance. A falling ROA could potentially indicate inefficiencies in asset management, decreased profitability, or changes in the business environment that are impacting the company's ability to generate returns from its assets.