Laboratory Corporation of America Holdings (LH)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,008,900 | 12,712,800 | 12,487,600 | 12,300,400 | 12,161,600 | 15,070,900 | 14,880,900 | 14,770,200 | 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 |
| Property, plant and equipment | US$ in thousands | 3,045,400 | 3,050,000 | 2,932,500 | 2,897,800 | 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 |
| Fixed asset turnover | 4.27 | 4.17 | 4.26 | 4.24 | 4.18 | 5.34 | 5.39 | 5.02 | 5.59 | 4.76 | 5.21 | 5.65 | 5.73 | 6.15 | 6.07 | 5.68 | 5.12 | 4.77 | 4.37 | 4.44 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $13,008,900K ÷ $3,045,400K
= 4.27
Laboratory Corporation of America Holdings has exhibited fluctuations in its fixed asset turnover ratio over the given period. The fixed asset turnover ratio represents the efficiency with which the company utilizes its fixed assets to generate revenue.
From March 31, 2020, to June 30, 2022, the fixed asset turnover ratio generally increased, indicating an improvement in the company's ability to generate revenue from its fixed assets. This upward trend suggests that Laboratory Corporation was becoming more efficient in utilizing its fixed assets to drive sales.
However, from September 30, 2022, the fixed asset turnover ratio started decreasing until December 31, 2024. A declining ratio may signify a potential decrease in the efficiency of the company in generating revenue from its fixed assets. This could be due to various factors such as underutilization of assets, inadequate maintenance, or increased levels of fixed asset investments without corresponding revenue growth.
It is important for the company to closely monitor its fixed asset turnover ratio and investigate the underlying reasons for the trend to ensure optimal utilization of its fixed assets and maintain a healthy balance between asset investments and revenue generation.
Peer comparison
Dec 31, 2024