Quest Diagnostics Incorporated (DGX)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,402,000 | 1,313,000 | 1,299,000 | 1,294,000 | 1,293,000 | 1,155,000 | 1,203,000 | 1,206,000 | 1,381,000 | 1,776,000 | 2,080,000 | 2,576,000 | 2,751,000 | 3,009,000 | 3,112,000 | 2,554,000 | 2,050,000 | 1,624,000 | 1,144,000 | 1,158,000 |
| Interest expense (ttm) | US$ in thousands | 226,000 | 194,000 | 176,000 | 166,000 | 152,000 | 148,000 | 141,000 | 140,000 | 142,000 | 143,000 | 148,000 | 150,000 | 151,000 | 153,000 | 157,000 | 160,000 | 163,000 | 166,000 | 168,000 | 172,000 |
| Interest coverage | 6.20 | 6.77 | 7.38 | 7.80 | 8.51 | 7.80 | 8.53 | 8.61 | 9.73 | 12.42 | 14.05 | 17.17 | 18.22 | 19.67 | 19.82 | 15.96 | 12.58 | 9.78 | 6.81 | 6.73 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,402,000K ÷ $226,000K
= 6.20
Quest Diagnostics Incorporated's interest coverage has shown a generally positive trend over the reported periods from March 31, 2020, to December 31, 2024. The interest coverage ratio, which measures the company's ability to meet its interest obligations from its operating income, started at 6.73 in March 2020 and gradually improved to a peak of 19.82 in June 2021.
However, from June 2021 to December 2024, the interest coverage ratio showed a declining trend, dropping to 6.20 by the end of December 2024. This decreasing trend suggests that the company's ability to cover its interest payments from operating income has weakened over this period, which could raise concerns about its financial stability and ability to meet debt obligations in the future.
Overall, while the interest coverage ratio for Quest Diagnostics Incorporated has shown both improvements and declines over the analyzed periods, it is crucial for investors and stakeholders to monitor this ratio closely to ensure the company's financial health and sustainability.
Peer comparison
Dec 31, 2024