Quest Diagnostics's gross profit for the
three
months ended in Dec. 2023 was $736 Mil. Quest Diagnostics's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $3,053 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Quest Diagnostics's gross profit for the
three
months ended in Dec. 2023 was $736 Mil. Quest Diagnostics's Revenue for the
three
months ended in Dec. 2023 was $2,288 Mil. Therefore, Quest Diagnostics's Gross Margin % for the quarter that ended in Dec. 2023 was 32.17%.
Quest Diagnostics had a gross margin of 32.17% for the quarter that ended in Dec. 2023 => Competition eroding margins
During the past 13 years, the highestGross Margin % of Quest Diagnostics was 39.02%. The lowest was 33.00%. And the median was 36.13%.
Quest Diagnostics Gross Profit Historical Data
The historical data trend for Quest Diagnostics's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Diagnostics & Research subindustry, Quest Diagnostics's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Quest Diagnostics Gross Profit Distribution
For the Medical Diagnostics & Research industry and Healthcare sector, Quest Diagnostics's Gross Profit distribution charts can be found below:
* The bar in red indicates where Quest Diagnostics's Gross Profit falls into.
Quest Diagnostics Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Quest Diagnostics's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,053 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Quest Diagnostics's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Quest Diagnostics had a gross margin of 32.17% for the quarter that ended in Dec. 2023 => Competition eroding margins
Quest Diagnostics Gross Profit Related Terms
Thank you for viewing the detailed overview of Quest Diagnostics's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Quest Diagnostics (Quest Diagnostics) Business Description
Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the U.S. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk assessment services, and information technology solutions.
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