Quest Diagnostics Incorporated (DGX)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.41 | 0.00 | 0.00 | 0.00 | 0.40 | 0.00 | 0.00 | 0.00 | 0.38 | 0.00 | 0.00 | 0.00 | 0.37 | 0.39 | 0.41 | 0.42 | 0.41 | 0.36 | 0.37 | 0.37 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,410,000K ÷ ($4,410,000K + $6,307,000K)
= 0.41
The debt-to-capital ratio of Quest Diagnostics, Inc. has been relatively stable over the past eight quarters, ranging from 0.38 to 0.43. This ratio indicates that approximately 38% to 43% of the company's capital structure is financed by debt, while the remaining portion is covered by equity.
Generally, a higher debt-to-capital ratio suggests higher financial risk, as the company relies more on debt financing. On the other hand, a lower ratio indicates a stronger equity position and lower financial risk.
Quest Diagnostics' debt-to-capital ratio hovering around 0.40 indicates a balanced capital structure with a moderate level of debt. However, it is important to consider other factors such as the company's ability to service its debt, its cash flow generation, and overall financial health when evaluating its debt levels.
Peer comparison
Dec 31, 2023