Quest Diagnostics Incorporated (DGX)
Return on equity (ROE)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 871,000 | 854,000 | 946,000 | 1,995,000 | 1,431,000 |
Total stockholders’ equity | US$ in thousands | 6,778,000 | 6,307,000 | 5,893,000 | 6,444,000 | 6,759,000 |
ROE | 12.85% | 13.54% | 16.05% | 30.96% | 21.17% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $871,000K ÷ $6,778,000K
= 12.85%
The return on equity (ROE) for Quest Diagnostics Incorporated has demonstrated fluctuations over the past five years. In 2020, the ROE stood at 21.17%, indicating that for every dollar of shareholders' equity invested, the company generated a return of approximately 21.17%. The following year, in 2021, the ROE increased significantly to 30.96%, reflecting improved profitability and efficiency in utilizing equity funds.
However, in 2022, the ROE dropped to 16.05%, suggesting a decrease in the company's ability to generate returns on shareholders' equity. This downward trend continued into 2023, with an ROE of 13.54%, indicating further challenges in delivering value to shareholders through equity investments.
By the end of 2024, the ROE had declined even further to 12.85%, signifying a continued struggle in enhancing profitability and efficiency in utilizing equity capital. Overall, the trend in ROE for Quest Diagnostics Incorporated showcases a mix of highs and lows, highlighting the importance of closely monitoring and addressing factors influencing the company's return on equity performance.
Peer comparison
Dec 31, 2024