Laboratory Corporation of America Holdings (LH)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 10.63 | 9.57 | 16.89 | 14.13 | 13.13 | |
| Number of days of payables | days | 34.34 | 38.14 | 21.60 | 25.84 | 27.80 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.63
= 34.34
The number of days of payables for Laboratory Corp. Of America Holdings has fluctuated over the past five years. The company's payables were managed more efficiently in 2021 with an average payment period of 21.60 days, indicating a shorter time taken to settle its accounts payable. This suggests that the company was able to negotiate favorable payment terms with its suppliers or improved its internal processes for paying off its obligations.
In 2020 and 2019, the number of days of payables increased to 25.84 days and 27.80 days, respectively. This indicates a longer average payment period, which may suggest a potential strain on the company's cash flow or a shift in payment practices.
In 2022 and 2023, the number of days of payables decreased to 32.52 days and 34.34 days, respectively. This suggests that the company took longer to settle its accounts payable during these years compared to the previous ones.
Overall, the trend in the number of days of payables reflects fluctuations in the company's handling of its accounts payable obligations, which could be influenced by various factors such as changes in supplier terms, cash flow management, or operational efficiency.
Peer comparison
Dec 31, 2023