Quest Diagnostics Incorporated (DGX)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,265,000 | 1,120,000 | 1,160,000 | 1,160,000 | 1,358,000 | 1,767,000 | 2,089,000 | 2,586,000 | 2,744,000 | 3,012,000 | 3,103,000 | 2,550,000 | 2,057,000 | 1,616,000 | 1,151,000 | 1,193,000 | 1,285,000 | 1,126,000 | 1,107,000 | 1,076,000 |
| Interest expense (ttm) | US$ in thousands | 163,000 | 153,000 | 149,000 | 148,000 | 148,000 | 150,000 | 151,000 | 151,000 | 152,000 | 154,000 | 158,000 | 162,000 | 166,000 | 170,000 | 173,000 | 177,000 | 180,000 | 179,000 | 176,000 | 173,000 |
| Interest coverage | 7.76 | 7.32 | 7.79 | 7.84 | 9.18 | 11.78 | 13.83 | 17.13 | 18.05 | 19.56 | 19.64 | 15.74 | 12.39 | 9.51 | 6.65 | 6.74 | 7.14 | 6.29 | 6.29 | 6.22 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,265,000K ÷ $163,000K
= 7.76
Quest Diagnostics, Inc.'s interest coverage ratio has shown a declining trend from Q1 2022 to Q4 2023. The company's ability to cover its interest expenses decreased from a high of 15.51 in Q1 2022 to 8.74 in Q4 2023, indicating a potential decrease in its ability to meet interest obligations. This downward trend may raise concerns about the company's financial health as it suggests a lower buffer against financial risks associated with interest payments. Further monitoring of the interest coverage ratio is recommended to assess the company's ability to service its debt obligations effectively.
Peer comparison
Dec 31, 2023