Quest Diagnostics Incorporated (DGX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,265,000 | 1,358,000 | 2,744,000 | 2,057,000 | 1,285,000 |
| Long-term debt | US$ in thousands | 4,410,000 | 3,978,000 | 4,010,000 | 4,013,000 | 3,966,000 |
| Total stockholders’ equity | US$ in thousands | 6,307,000 | 5,893,000 | 6,444,000 | 6,759,000 | 5,641,000 |
| Return on total capital | 11.80% | 13.76% | 26.25% | 19.10% | 13.38% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,265,000K ÷ ($4,410,000K + $6,307,000K)
= 11.80%
Quest Diagnostics, Inc.'s return on total capital has displayed variability over the past five years. The return on total capital decreased from 23.26% in 2021 to 11.92% in 2023. This decline may indicate a decrease in the company's efficiency in utilizing both equity and debt to generate profits.
The highest return on total capital was observed in 2021 at 23.26%, indicating strong operational performance and effective utilization of invested capital. However, in 2023, the return on total capital dropped to 11.92%, suggesting a potential decrease in profitability relative to the investment in both debt and equity.
In summary, the trend in Quest Diagnostics, Inc.'s return on total capital highlights fluctuations in the company's profitability and efficiency in managing its total capital over the analyzed period. Further analysis and examination of the company's financial performance drivers may be required to understand the factors contributing to these fluctuations.
Peer comparison
Dec 31, 2023