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