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

Company name
Symbol
Interest coverage
Quest Diagnostics Incorporated
DGX
7.76
Fulgent Genetics Inc
FLGT
-2,230.44
Laboratory Corporation of America Holdings
LH
4.04
RadNet Inc
RDNT
1.53