Quest Diagnostics Incorporated (DGX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,022,000 | 13,482,000 | 13,425,000 | 12,794,000 | 12,837,000 | 13,223,000 | 13,312,000 | 13,442,000 | 13,611,000 | 13,572,000 | 12,861,000 | 13,931,000 | 14,026,000 | 14,143,000 | 12,990,000 | 12,049,000 | 12,843,000 | 12,019,000 | 11,760,000 | 11,937,000 |
| 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 |
| Financial leverage ratio | 2.22 | 2.10 | 2.15 | 2.11 | 2.18 | 2.12 | 2.08 | 2.11 | 2.11 | 2.12 | 2.18 | 2.07 | 2.08 | 2.21 | 2.23 | 2.13 | 2.28 | 2.14 | 2.15 | 2.26 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,022,000K ÷ $6,307,000K
= 2.22
The financial leverage ratio for Quest Diagnostics, Inc. has shown some fluctuations over the past eight quarters, ranging from 2.08 to 2.22. This ratio measures the extent to which the company relies on debt to finance its operations and assets.
A ratio of 2.22 in Q4 2023 indicates that for every dollar of equity, the company has $2.22 in debt. This suggests a higher level of leverage compared to the previous quarters, which ranged between 2.08 and 2.18.
A high financial leverage ratio can indicate a higher level of financial risk, as the company may have higher debt obligations to meet. On the other hand, leverage can also amplify returns when the company is performing well.
It is essential for investors and analysts to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage financial risk effectively.
Peer comparison
Dec 31, 2023