Laboratory Corporation of America Holdings (LH)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 11.37 | 16.90 | 16.05 | 12.75 | 13.02 | 12.16 | 13.26 | 17.00 | 16.89 | 15.54 | 16.77 | 15.28 | 14.13 | 13.41 | 15.63 | 14.76 | 13.13 | 13.47 | 15.27 | 13.66 | |
| Number of days of payables | days | 32.09 | 21.60 | 22.74 | 28.62 | 28.03 | 30.02 | 27.53 | 21.47 | 21.60 | 23.49 | 21.77 | 23.89 | 25.84 | 27.23 | 23.35 | 24.72 | 27.80 | 27.11 | 23.91 | 26.72 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.37
= 32.09
The number of days of payables for Laboratory Corp. Of America Holdings has shown some variability over the past eight quarters. In Q4 2023, the company took an average of 34.34 days to pay its payables, which is higher compared to the previous quarter (Q3 2023) where it took 25.45 days. This indicates that the company took longer to pay its suppliers in the most recent quarter.
Looking at the trend over the past two years, there seems to be some fluctuation in the number of days of payables, with peaks and troughs occurring intermittently. In general, the number of days of payables has been relatively stable within the range of 21.47 days to 34.34 days, with occasional deviations.
Analyzing the number of days of payables can provide insights into the company's liquidity management and relationships with its suppliers. A higher number of days of payables may suggest that the company is taking longer to settle its obligations, which could be due to various factors such as cash flow constraints or negotiating better payment terms with suppliers. It is essential for stakeholders to monitor this metric alongside other financial ratios to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023