Quest Diagnostics Incorporated (DGX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,153,000 | 14,022,000 | 12,837,000 | 13,611,000 | 14,026,000 |
| Total stockholders’ equity | US$ in thousands | 6,778,000 | 6,307,000 | 5,893,000 | 6,444,000 | 6,759,000 |
| Financial leverage ratio | 2.38 | 2.22 | 2.18 | 2.11 | 2.08 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,153,000K ÷ $6,778,000K
= 2.38
The financial leverage ratio of Quest Diagnostics Incorporated has shown a gradual increase over the years, from 2.08 as of December 31, 2020, to 2.38 as of December 31, 2024. This indicates that the company has been relying more on debt financing compared to equity financing. A higher financial leverage ratio implies that a larger portion of the company's assets is funded by debt, which can magnify returns on equity but also increase financial risk. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial position and risk profile in relation to its debt obligations.
Peer comparison
Dec 31, 2024