Quest Diagnostics Incorporated (DGX)

Return on total capital

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,265,000 1,120,000 1,160,000 1,160,000 1,358,000 1,767,000 2,089,000 2,586,000 2,744,000 3,012,000 3,103,000 2,550,000 2,057,000 1,616,000 1,151,000 1,193,000 1,285,000 1,126,000 1,107,000 1,076,000
Long-term debt US$ in thousands 4,410,000 3,978,000 4,010,000 4,013,000 4,018,000 4,020,000 4,033,000 3,966,000 3,188,000 3,169,000 3,131,000
Total stockholders’ equity US$ in thousands 6,307,000 6,425,000 6,249,000 6,050,000 5,893,000 6,235,000 6,411,000 6,377,000 6,444,000 6,392,000 5,899,000 6,745,000 6,759,000 6,400,000 5,831,000 5,657,000 5,641,000 5,605,000 5,459,000 5,290,000
Return on total capital 11.80% 17.43% 18.56% 19.17% 13.76% 28.34% 32.58% 40.55% 26.25% 47.12% 52.60% 37.81% 19.10% 15.51% 11.68% 12.31% 13.38% 12.81% 12.83% 12.78%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,265,000K ÷ ($4,410,000K + $6,307,000K)
= 11.80%

The return on total capital for Quest Diagnostics, Inc. has shown a decreasing trend over the past quarters. In Q4 2023, the return on total capital was 11.92%, which declined from 12.47% in Q1 2023. This downward trend follows a peak in Q2 2022, where the return on total capital was at its highest at 22.44%. While the return on total capital has been relatively stable in the double-digit range, it is important for the company to closely monitor and manage its capital allocation and efficiency to maintain sustainable returns for its investors.


Peer comparison

Dec 31, 2023

Company name
Symbol
Return on total capital
Quest Diagnostics Incorporated
DGX
11.80%
Fulgent Genetics Inc
FLGT
-15.67%
Laboratory Corporation of America Holdings
LH
6.76%
RadNet Inc
RDNT
6.84%