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.
Peer comparison
Dec 31, 2023