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.