Quest Diagnostics Incorporated (DGX)

Quest Diagnostics Incorporated has consistently maintained a strong solvency position as reflected in its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 for the years 2020 to 2024. This indicates that the company's assets are primarily funded by equity rather than debt, showcasing a low financial risk and a high degree of financial stability.

Additionally, the Financial leverage ratio has shown a slight increasing trend over the years, from 2.08 in 2020 to 2.38 in 2024. Despite this increase, the ratio remains relatively low, indicating that Quest Diagnostics has been using a conservative amount of debt to finance its operations while relying more on equity. This suggests that the company has a solid capital structure and is not overly leveraged.

Overall, based on these solvency ratios, Quest Diagnostics appears to be in a healthy financial position with a strong ability to meet its financial obligations in the long term.

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Coverage ratios

Quest Diagnostics Incorporated has shown a favorable trend in its interest coverage ratio over the past years, indicating its ability to meet interest payment obligations from its operating income. The interest coverage ratio has been relatively stable, with a notable increase from 2020 to 2021, reflecting improved profitability and/or lower interest expenses during this period. However, there was a decline in the interest coverage ratio in the subsequent years, suggesting a potential increase in interest expenses or a decrease in operating income in 2022, 2023, and 2024. It is important for stakeholders to monitor this ratio closely to ensure the company's ability to service its debt obligations efficiently.