DGXNEUTRAL

DGX Return on Equity (ROE) Analysis

14.6%

Higher than 65% of Healthcare sector peers

Updated 1666h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; at 14.6%, Quest Diagnostics earns $14.60 for every $100 of equity invested.

Sector Performance

65th percentile

DGX

14.6%

Sector Median

10.1%

Sector Avg

75.0%

Prior Period

14.5%(Jul 2026)

→ Stable

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; at 14.6%, Quest Diagnostics earns $14.60 for every $100 of equity invested.

This is above the healthcare sector median of 8.9%, placing the company in the 66th percentile of its peers, indicating better-than-average profitability. The year-over-year change is not available, while the quarter-over-quarter change is +0.7%, with the most recent values showing a slight rise from 14.5% to 14.6%. The lack of a longer trend makes it difficult to judge momentum, but the high relative level suggests efficient use of capital with limited immediate downside. The combination of an above-median ROE and only a small quarterly increase implies steady performance rather than accelerating opportunity. This metric supports the overall NEUTRAL verdict, as the return is solid but not exceptional enough to justify a bullish or bearish tilt.

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 14.6% compares to a Healthcare sector median of 10.1%, placing it in the 65th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: ALGN (10.1%), TECH (9.0%), BIIB (7.7%), ABT (12.5%), TMO (13.5%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.