Laboratory Corporation of America Holdings (LH)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,384,500 | 8,796,700 | 8,155,000 | 10,496,600 | 9,025,700 |
| Inventory | US$ in thousands | 493,200 | 474,600 | 470,600 | 401,400 | 423,200 |
| Inventory turnover | 19.03 | 18.53 | 17.33 | 26.15 | 21.33 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,384,500K ÷ $493,200K
= 19.03
The inventory turnover for Laboratory Corporation of America Holdings has shown variability over the past five years. In 2020, the inventory turnover ratio was 21.33, indicating that the company's inventory was turned over approximately 21.33 times during the year.
This ratio increased to 26.15 in 2021, suggesting a more efficient management of inventory relative to the prior year. However, in 2022, the inventory turnover ratio decreased to 17.33, which may indicate a longer time period for the company to sell its inventory.
Subsequently, the ratio increased slightly to 18.53 in 2023 and further to 19.03 in 2024, showcasing an improvement in the efficiency of inventory management compared to 2022. Overall, the trend in inventory turnover suggests fluctuations in the company's inventory management practices, with a general improvement in recent years.
Peer comparison
Dec 31, 2024