Quest Diagnostics Incorporated (DGX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,416,000 | 1,262,000 | 1,383,000 | 2,751,000 | 2,050,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,778,000 | 6,307,000 | 5,893,000 | 6,444,000 | 6,759,000 |
| Return on total capital | 20.89% | 20.01% | 23.47% | 42.69% | 30.33% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,416,000K ÷ ($—K + $6,778,000K)
= 20.89%
Quest Diagnostics Incorporated's return on total capital has shown a fluctuating trend over the past five years. Starting at 30.33% in December 31, 2020, it increased significantly to 42.69% by December 31, 2021. However, in the following years, the return on total capital decreased to 23.47% by December 31, 2022, and further to 20.01% by December 31, 2023. In the most recent period, as of December 31, 2024, the return on total capital slightly improved to 20.89%.
It is essential for investors and stakeholders to closely monitor this ratio as it reflects the company's efficiency in generating profits from its total capital employed. The fluctuations in the return on total capital suggest varying levels of profitability and operational effectiveness for Quest Diagnostics over the years, indicating the need for a comprehensive analysis of the company's financial performance and capital allocation strategies.
Peer comparison
Dec 31, 2024