Current Ratio

The current ratio of 1.18x measures how well Quest Diagnostics can cover its short-term debts with its short-term assets — a value below 1.0 would indicate potential trouble, so at 1.18x the company has a thin liquidity cushion.

This is notably lower than the Healthcare sector median of 2.02x, placing DGX in the 21st percentile among peer companies, meaning most competitors hold more liquidity per dollar of liabilities. No year-over-year or quarter-over-quarter change data is available, so the trend direction over the last eight quarters cannot be assessed. The combination of a below-median current ratio and the absence of trend data leaves uncertainty: the low level signals a tighter liquidity position, but without a trend, it is unclear whether this is improving or worsening. This metric alone introduces a risk concern regarding short-term financial flexibility, yet the overall NEUTRAL verdict suggests that other strengths, such as cash flow or debt structure, offset this weakness. The low current ratio partially contradicts a bullish stance but does not override a NEUTRAL rating given the lack of trend deterioration.

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