Laboratory Corporation of America Holdings (LH)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,901,700 | 15,811,000 | 15,621,000 | 15,510,300 | 15,632,000 | 13,745,500 | 14,941,300 | 15,859,000 | 16,120,900 | 16,554,600 | 16,388,100 | 15,316,200 | 13,978,500 | 12,442,100 | 11,474,500 | 11,587,400 | 11,554,800 | 11,388,900 | 11,291,700 | 11,276,300 |
| Property, plant and equipment | US$ in thousands | 2,911,800 | 2,820,500 | 2,762,100 | 2,944,100 | 2,794,100 | 2,884,700 | 2,870,200 | 2,807,600 | 2,815,400 | 2,692,200 | 2,701,800 | 2,697,000 | 2,729,600 | 2,608,600 | 2,627,700 | 2,609,600 | 2,636,600 | 2,462,800 | 2,544,200 | 2,457,900 |
| Fixed asset turnover | 4.43 | 5.61 | 5.66 | 5.27 | 5.59 | 4.76 | 5.21 | 5.65 | 5.73 | 6.15 | 6.07 | 5.68 | 5.12 | 4.77 | 4.37 | 4.44 | 4.38 | 4.62 | 4.44 | 4.59 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,901,700K ÷ $2,911,800K
= 4.43
The fixed asset turnover ratio for Laboratory Corp. Of America Holdings has experienced some fluctuations over the past eight quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
In Q4 2023, the fixed asset turnover ratio was 4.18, which was lower compared to the previous quarter at 4.80. This suggests that the company generated less revenue per dollar of fixed assets in Q4 2023. However, it is important to note that the ratio was still relatively high, indicating a reasonable level of efficiency in the utilization of fixed assets.
Looking at a longer-term trend, the fixed asset turnover ratio has generally been between 5.01 and 5.65 over the past eight quarters. This indicates that Laboratory Corp. Of America Holdings has been consistently efficient in generating revenue from its fixed assets during this period.
Overall, despite some quarterly fluctuations, the company's fixed asset turnover ratio appears to be at a reasonable level, showing that Laboratory Corp. Of America Holdings has been effectively leveraging its fixed assets to generate revenue.
Peer comparison
Dec 31, 2023