Laboratory Corporation of America Holdings (LH)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 10.72 | 10.63 | 9.57 | 16.89 | 14.13 | |
| Number of days of payables | days | 34.06 | 34.34 | 38.14 | 21.60 | 25.84 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.72
= 34.06
The number of days of payables for Laboratory Corporation of America Holdings has fluctuated over the past five years. The trend shows a decrease from 25.84 days as of December 31, 2020, to 21.60 days as of December 31, 2021, indicating that the company is taking less time to pay its creditors.
However, there was a significant increase in the number of days of payables to 38.14 days as of December 31, 2022, followed by a slight decrease to 34.34 days and 34.06 days as of December 31, 2023 and 2024 respectively. This suggests that the company started taking longer to pay its suppliers in 2022 but managed to improve its payables turnover in the subsequent years.
It is crucial to monitor the number of days of payables as it can indicate the efficiency of the company's working capital management and its relationships with suppliers. Fluctuations in this metric may reflect changes in payment terms, cash flow management, or supplier negotiations.
Peer comparison
Dec 31, 2024