Quest Diagnostics Incorporated (DGX)

Return on assets (ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 871,000 841,000 840,000 846,000 854,000 763,000 792,000 790,000 942,000 1,230,000 1,479,000 1,874,000 1,988,000 2,175,000 2,238,000 1,794,000 1,425,000 1,102,000 750,000 772,000
Total assets US$ in thousands 16,153,000 16,095,000 13,881,000 13,954,000 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
ROA 5.39% 5.23% 6.05% 6.06% 6.09% 5.66% 5.90% 6.17% 7.34% 9.30% 11.11% 13.94% 14.61% 16.03% 17.40% 12.88% 10.16% 7.79% 5.77% 6.41%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $871,000K ÷ $16,153,000K
= 5.39%

Quest Diagnostics Incorporated's return on assets (ROA) has shown fluctuations over the reported periods. ROA measures the company's efficiency in generating profits from its assets.

From March 31, 2020, to June 30, 2022, ROA exhibited an increasing trend, reaching a peak of 17.40% on June 30, 2021. This suggests that Quest Diagnostics effectively utilized its assets to generate higher returns during this period.

However, starting from September 30, 2022, ROA began to decline gradually. The values dropped to 5.23% on September 30, 2024. This downward trend indicates a potential decrease in the company's profitability concerning its asset base.

Despite the fluctuations, Quest Diagnostics' ROA generally remained above 5%, indicating that the company has been able to generate a reasonable level of returns from its assets. Investors and stakeholders should closely monitor this metric to assess the company's ability to generate profits relative to its asset base in the future.