DGXNEUTRAL

Return on Equity (ROE)

14.5%

Higher than 63% of Healthcare sector peers

Updated 320h ago

Sector Performance

63th percentile

DGX

14.5%

Sector Median

8.9%

Sector Avg

37.1%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from every dollar of shareholders’ equity — a 14.5% ROE means Quest Diagnostics earned $0.145 for each $1 of equity.

This sits above the healthcare sector median of 11.3%, placing DGX in the 59th percentile among its peers. Trend data is not available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and only one historical value (14.5%) is provided. Without a trend, the analysis relies solely on the current level, which is moderately above the sector norm — indicating average performance relative to peers but no directional signal for improvement or decline. This neutral level of return, lacking a clear upward or downward movement, neither adds extra risk nor offers a clear-cut opportunity. The 14.5% ROE supports the overall NEUTRAL verdict by confirming the company’s profitability is in line with its sector, without demonstrating either exceptional strength or weakness.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about DGX?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does DGX's Return on Equity (ROE) compare to its sector?

DGX's Return on Equity (ROE) of 14.5% compares to a Healthcare sector median of 8.9%, placing it in the 63th percentile.

Who are DGX's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%), BEAM (-5.8%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.