Laboratory Corporation of America Holdings (LH)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,384,500 | 9,163,300 | 8,991,300 | 8,888,300 | 8,796,700 | 11,053,100 | 10,828,100 | 10,617,100 | 11,096,100 | 9,308,900 | 10,005,400 | 10,600,800 | 10,496,600 | 10,400,400 | 10,060,000 | 9,492,400 | 9,025,700 | 8,573,500 | 8,348,000 | 8,396,600 |
| Inventory | US$ in thousands | 493,200 | 483,100 | 441,800 | 475,000 | 474,600 | 461,100 | 487,800 | 481,400 | 470,600 | 467,700 | 436,300 | 440,700 | 401,400 | 410,700 | 421,300 | 427,500 | 423,200 | 392,500 | 342,300 | 254,000 |
| Inventory turnover | 19.03 | 18.97 | 20.35 | 18.71 | 18.53 | 23.97 | 22.20 | 22.05 | 23.58 | 19.90 | 22.93 | 24.05 | 26.15 | 25.32 | 23.88 | 22.20 | 21.33 | 21.84 | 24.39 | 33.06 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,384,500K ÷ $493,200K
= 19.03
Laboratory Corporation of America Holdings' inventory turnover ratio, which measures how efficiently the company manages its inventory, has shown fluctuation over the past few years.
In March 2020, the inventory turnover stood at 33.06, indicating that the company's inventory was turning over approximately 33 times during that period. However, this ratio declined to 24.39 by June 2020 and continued to decrease to 18.53 by December 2023.
There were periods of recovery in between, such as in September 2021 when the ratio increased to 25.32 and in December 2022 when it rose to 23.58. Nonetheless, the trend was generally downward from 2020 to 2023.
Subsequently, the inventory turnover ratio bounced back slightly to 18.71 in March 2024 and recovered to 20.35 by June 2024. This improvement suggests that the company may have made efforts to better manage its inventory during those periods.
Overall, the inventory turnover ratio for Laboratory Corporation of America Holdings has displayed variability, indicating the company's changing ability to efficiently convert inventory into sales. Further analysis and comparison to industry benchmarks may be required to assess the company's performance more accurately.
Peer comparison
Dec 31, 2024
Dec 31, 2024