Laboratory Corporation of America Holdings (LH)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,008,900 | 12,161,600 | 11,863,900 | 16,120,900 | 13,978,500 |
| Property, plant and equipment | US$ in thousands | 3,045,400 | 2,911,800 | 2,794,100 | 2,815,400 | 2,729,600 |
| Fixed asset turnover | 4.27 | 4.18 | 4.25 | 5.73 | 5.12 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,008,900K ÷ $3,045,400K
= 4.27
The fixed asset turnover ratio for Laboratory Corporation of America Holdings has exhibited some fluctuations over the past five years. The ratio increased from 5.12 in December 2020 to 5.73 in December 2021, indicating that the company generated $5.73 in sales for every dollar invested in fixed assets during that period. However, in the following years, the fixed asset turnover experienced a decline, dropping to 4.25 in December 2022, 4.18 in December 2023, and then slightly increasing to 4.27 in December 2024.
The decrease in the fixed asset turnover ratio may suggest that the company's fixed assets are not being utilized as efficiently to generate sales compared to the previous years. This could be due to various factors such as lower sales volumes relative to the value of fixed assets or potential underutilization of fixed assets.
Overall, the trend in the fixed asset turnover ratio for Laboratory Corporation of America Holdings indicates a mixed performance in efficiently utilizing its fixed assets to generate sales over the analyzed period. Additional analysis and investigation into the company's operational efficiency and management of fixed assets may be warranted to address any potential issues and improve the fixed asset turnover ratio in the future.
Peer comparison
Dec 31, 2024