Quest Diagnostics (FRA:QDI) Inventory Turnover : 9.02 (As of Sep. 2024)

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What is Quest Diagnostics Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Quest Diagnostics's Cost of Goods Sold for the three months ended in Sep. 2024 was €1,511 Mil. Quest Diagnostics's Average Total Inventories for the quarter that ended in Sep. 2024 was €167 Mil. Quest Diagnostics's Inventory Turnover for the quarter that ended in Sep. 2024 was 9.02.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Quest Diagnostics's Days Inventory for the three months ended in Sep. 2024 was 10.11.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Quest Diagnostics's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.07.

Quest Diagnostics Inventory Turnover Historical Data

The historical data trend for Quest Diagnostics's Inventory Turnover 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.

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Quest Diagnostics Inventory Turnover Chart

Quest Diagnostics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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45.86

32.45

31.70

33.33

31.98

Quest Diagnostics Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															8.44	8.21	8.61	8.82	9.02

Quest Diagnostics Inventory Turnover Calculation

Quest Diagnostics's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	5684.483	/ (	(181.248	+	174.23)	/	2 )
=	5684.483	/	177.739
=	31.98

Quest Diagnostics's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	1510.977	/ (	(169.078	+	165.784)	/	2 )
=	1510.977	/	167.431
=	9.02

Quest Diagnostics (FRA:QDI) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Quest Diagnostics's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	167.431	/	1510.977	*	365 / 4
	=	10.11

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Quest Diagnostics's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	167.431	/	2241.688
	=	0.07

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Quest Diagnostics Inventory Turnover Related Terms

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Quest Diagnostics Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Quest Diagnostics Inc (FRA:QDI) » Definitions » Inventory Turnover

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Traded in Other Exchanges

DGX:USA DGX:Mexico 0KSX:UK QDI:Germany Q1UE34:Brazil

Address

500 Plaza Drive, Secaucus, NJ, USA, 07094

Website

https://www.questdiagnostics.com

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the us. 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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