Laboratory Corporation of America Holdings (LH)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,412,200 | 11,668,600 | 11,443,600 | 11,232,600 | 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 | 8,302,300 | 8,184,700 | 8,114,900 | 8,089,200 |
| Inventory | US$ in thousands | 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 | 244,700 | 234,900 | 219,700 | 233,700 |
| Inventory turnover | 19.83 | 25.31 | 23.46 | 23.33 | 23.58 | 19.90 | 22.93 | 24.05 | 26.15 | 25.32 | 23.88 | 22.20 | 21.33 | 21.84 | 24.39 | 33.06 | 33.93 | 34.84 | 36.94 | 34.61 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,412,200K ÷ $474,600K
= 19.83
The inventory turnover for Laboratory Corp. Of America Holdings has shown a decreasing trend over the past two years. In Q4 2023, the inventory turnover ratio stood at 18.53, which was lower than the ratios for Q3 2023 (21.48), Q2 2023 (21.00), and Q1 2023 (22.08). This downward trend indicates that the company took longer to sell its inventory in Q4 2023 compared to the previous quarters in 2023.
When comparing the inventory turnover for Q4 2023 to the same quarter in the previous year (Q4 2022), we see a decline from 22.29 to 18.53. This suggests a significant decrease in the efficiency of inventory management from one year to the next.
Overall, the decreasing trend in inventory turnover could indicate potential issues such as overstocking, slow sales, or inefficiencies in inventory management processes. It may be beneficial for the company to review its inventory levels, sales strategies, and operational processes to improve inventory turnover and optimize working capital utilization.
Peer comparison
Dec 31, 2023
Dec 31, 2023