Quest Diagnostics Incorporated (DGX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,307,000 | 5,893,000 | 6,444,000 | 6,759,000 | 5,641,000 |
| ROE | 13.54% | 16.05% | 30.96% | 21.17% | 15.21% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $854,000K ÷ $6,307,000K
= 13.54%
Quest Diagnostics, Inc.'s return on equity (ROE) has displayed fluctuations over the past five years. The ROE decreased from 15.16% in 2019 to 13.48% in 2023, indicating a slight decline in the company's efficiency in generating profits from shareholders' equity. However, the ROE remained above 10% during this period, signifying an adequate return on equity compared to the cost of equity capital.
The highest ROE recorded was 30.85% in 2021, demonstrating a strong performance in utilizing shareholders' equity to generate profits. This peak could be attributed to efficient cost management, revenue growth, or improved operational performance during that year.
Although the ROE dipped in 2020 and 2022, it rebounded in 2023 but still remained below the levels observed in 2021. Investors and stakeholders may want to further investigate the factors influencing these fluctuations to assess the company's financial health and performance in utilizing shareholder funds effectively.
Peer comparison
Dec 31, 2023