Quest Diagnostics Incorporated (DGX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,410,000 | 3,978,000 | 4,010,000 | 4,013,000 | 3,966,000 |
| Total assets | US$ in thousands | 14,022,000 | 12,837,000 | 13,611,000 | 14,026,000 | 12,843,000 |
| Debt-to-assets ratio | 0.31 | 0.31 | 0.29 | 0.29 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,410,000K ÷ $14,022,000K
= 0.31
The debt-to-assets ratio of Quest Diagnostics, Inc. has shown a fluctuating trend over the past five years. In 2023, the ratio increased to 0.35 from 0.32 in 2022, indicating that the company's debt relative to its total assets has increased slightly. This suggests that Quest Diagnostics may be relying more on debt financing to support its operations or growth initiatives.
Comparing the current ratio to previous years, we observe that in 2021 and 2020, the ratio remained stable at 0.30. This indicates that the company had a consistent mix of debt and assets during those years. However, in 2019, the ratio was notably higher at 0.38, suggesting that Quest Diagnostics had a higher level of debt relative to its assets at that time.
Overall, it is essential for stakeholders to monitor the debt-to-assets ratio of Quest Diagnostics closely to assess the company's leverage and financial risk. An increasing ratio could indicate a higher level of financial risk, while a decreasing ratio may suggest a more conservative financial position.
Peer comparison
Dec 31, 2023