Quest Diagnostics Incorporated Company Profile and SWOT Analysis by ICDResearch

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									Quest Diagnostics Incorporated

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Quest Diagnostics Incorporated                                                Financial Snapshot

                                                                              Operating Performance
Fast Facts
                                     3 Giralda Farms, Madison, 07940,United   The company reported revenues of US$7,368.93
Headquarters Address
                                     States of America                        million during 2010, with a CARC of 4.13% during
                                                                              2006–2010. Its revenue declined at an annual rate of
Telephone                            + 1 201 3935000
                                                                              1.16% over the previous fiscal year. In 2010, the
                                                                              company recorded an operating margin of 17.58%, as
Fax                                  + 1 201 4624169                          against 17.95% in 2009.

Website                              www.questdiagnostics.com
                                                                              Revenue and Margins
Ticker Symbol, Stock Exchange        DGX, New York Stock Exchange

Number of Employees                  43,000

Fiscal Year End                      December

Revenue (in US$ million)             7,368.93




SWOT Analysis

Strengths                            Weaknesses                               Return on Equity

Diversified Facilities               Outstanding Debt                         The company recorded a return on equity (ROE) of
                                                                              17.87% for 2010, as compared to its peers,
                                                                              Laboratory Corporation of America Holdings (Ticker:
Strong Financial Performance         Pending lawsuits/Legal Proceedings       LH), Bio-Reference Laboratories, Inc. (Ticker: BRLI)
                                                                              and PAREXEL International Corporation (Ticker:
Strong Market Position                                                        PRXL), which recorded ROEs of 22.63%, 17.31% and
                                                                              9.45% respectively. The company reported an
                                                                              operating margin of 17.58% in 2010.
Wide Range of Services

Opportunities                        Threats                                  Return on Equity


Changing Demographics                Government Regulations

                                     Government Reimbursements from
Emerging markets
                                     Medicare & Medicaid

Growing Diagnostic Testing Market    Uncertain R&D Outcomes

Growth in the Prevalence of Cancer




                                                                              Liquidity Position

                                                                              The company reported a current ratio of 1.32 in 2010,
                                                                              as compared to its peers, Laboratory Corporation of
                                                                              America Holdings, Bio-Reference Laboratories, Inc.
                                                                              and PAREXEL International Corporation, which
                                                                              recorded current ratios of 1.02, 2.07 and 1.32
                                                                              respectively. As of December 2010, the company
                                                                              recorded cash and short-term investments of worth
                                                                              US$449.30 million, against US$349.00 million current
                                                                              debt. The company reported a debt to equity ratio of
                                                                              0.74 in 2010 as compared to its peers, Laboratory
                                                                              Corporation of America Holdings, Bio-Reference
                                                                              Laboratories, Inc. and PAREXEL International
                                                                              Corporation, which recorded debt to equity ratios of
                                                                              0.89, 0.25 and 0.49 respectively.




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Quest Diagnostics Incorporated - SWOT Profile                                                                        Page 1
Quest Diagnostics Incorporated

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................17
      2.3.2       Efficiency ..........................................................................................................................................................18
      2.3.3       Capital Expenditure ..........................................................................................................................................19
      2.3.4       Valuation ..........................................................................................................................................................20
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................21
      2.3.6       Liquidity ............................................................................................................................................................22
3     Mergers & Acquisitions and Partnerships ........................................................................................... 23
    3.1       M&A and Partnerships Strategy ...........................................................................................................................23
4     SWOT 
								
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