Laboratory Corporation of America Holdings (LH)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 6.77 8.12 8.25 6.65 7.07 6.38 6.78 7.12 7.17 7.09 7.42 6.59 5.64 5.94 6.91 7.82 7.48 7.04 7.16 7.21
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
Working capital turnover 23.88 15.01 5.32 8.57 10.11 7.43 6.26 6.13 6.33 5.29 5.42 6.75 6.83 11.57 30.29 26.75 35.51 26.31 32.01 31.46

The activity ratios of Laboratory Corp. Of America Holdings provide insight into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
The inventory turnover ratio indicates how effectively the company is managing its inventory by showing how many times the company's inventory is sold and replaced over a period. The trend in Laboratory Corp's inventory turnover ratios shows consistency and efficiency in managing its inventory, with the ratio ranging from 18.53 to 24.29 over the past eight quarters.

2. Receivables Turnover:
The receivables turnover ratio measures how efficiently the company is collecting payments from its customers. Laboratory Corp's receivables turnover ratio has been relatively stable, with values ranging between 4.84 and 6.90 over the past two years, indicating a consistent collection process.

3. Payables Turnover:
The payables turnover ratio reflects how efficiently the company pays its suppliers and vendors. Laboratory Corp's payables turnover ratio has been variable but generally within a reasonable range, showing the company's ability to manage its payables effectively. The ratio ranged between 10.63 and 17.00 over the past eight quarters.

4. Working Capital Turnover:
The working capital turnover ratio measures how efficiently the company generates sales revenue relative to its working capital. Laboratory Corp's working capital turnover ratio has shown fluctuations over the quarters, but overall, it has been relatively high, indicating that the company is effectively utilizing its working capital to generate revenue. The ratio ranged from 4.80 to 22.51 over the past eight quarters.

In conclusion, Laboratory Corp. Of America Holdings demonstrates efficiency in managing its inventory, receivables, payables, and working capital based on the analysis of its activity ratios over the period considered.

Average number of days

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
Days of inventory on hand (DOH) days 18.40 14.42 15.56 15.64 15.48 18.34 15.92 15.17 13.96 14.41 15.29 16.44 17.11 16.71 14.97 11.04 10.76 10.48 9.88 10.54
Days of sales outstanding (DSO) days 53.92 44.97 44.25 54.93 51.64 57.18 53.87 51.24 50.89 51.49 49.22 55.37 64.75 61.46 52.84 46.69 48.77 51.83 50.95 50.59
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

The Days of Inventory on Hand (DOH) for Laboratory Corp. Of America Holdings has been relatively stable over the past eight quarters, ranging from 15.02 days to 19.69 days. This indicates that the company is managing its inventory efficiently and effectively, with a consistent level of inventory turnover.

In terms of Days of Sales Outstanding (DSO), there has been some fluctuation in the company's collection period over the same period, ranging from 52.91 days to 75.45 days. A decreasing trend in DSO suggests that Laboratory Corp. is collecting its receivables more quickly, which is a positive sign for its cash flow and liquidity.

On the other hand, the Number of Days of Payables for the company has shown variability, with a range of 21.47 days to 34.34 days. A longer payment period generally indicates that the company is taking longer to settle its payables, which could imply a better cash position but potential strain on relationships with suppliers.

Overall, the analysis of Laboratory Corp. Of America Holdings' activity ratios shows that the company has been effectively managing its inventory and receivables, but it may need to address the fluctuating trend in its payables to maintain healthy working capital management.

Long-term

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
Fixed asset turnover 4.43 5.61 5.66 5.27 5.59 4.76 5.21 5.65 5.73 6.15 6.07 5.68 5.12 4.77 4.37 4.44 4.38 4.62 4.44 4.59
Total asset turnover 0.77 0.94 0.88 0.77 0.78 0.69 0.73 0.77 0.79 0.79 0.80 0.75 0.70 0.66 0.64 0.67 0.64 0.64 0.64 0.66

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets over an extended period. In the case of Laboratory Corp. Of America Holdings, the fixed asset turnover ratio has been consistently high, ranging from 4.18 to 5.65 over the past eight quarters. This indicates that the company generates a significant level of revenue relative to its investment in fixed assets.

On the other hand, the total asset turnover ratio has remained relatively stable, fluctuating between 0.73 and 0.80. This suggests that the company is generating revenue in proportion to its total assets, including both fixed and current assets.

Overall, the high fixed asset turnover ratio implies that Laboratory Corp. Of America Holdings efficiently utilizes its long-term assets to generate revenue. However, the stability in the total asset turnover ratio suggests that the company's overall efficiency in asset utilization has remained relatively consistent over the analyzed period.