Laboratory Corporation of America Holdings (LH)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,008,900 | 12,161,600 | 11,863,900 | 16,120,900 | 13,978,500 |
| Receivables | US$ in thousands | 1,936,500 | 1,905,800 | 2,211,500 | 2,247,500 | 2,479,800 |
| Receivables turnover | 6.72 | 6.38 | 5.36 | 7.17 | 5.64 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $13,008,900K ÷ $1,936,500K
= 6.72
The receivables turnover ratio for Laboratory Corporation of America Holdings has shown fluctuations over the past five years. The ratio was 5.64 times in December 31, 2020, increased to 7.17 times in December 31, 2021, then decreased to 5.36 times in December 31, 2022. It improved to 6.38 times by December 31, 2023, and further increased to 6.72 times by December 31, 2024.
A higher receivables turnover ratio generally indicates that the company is more efficient in collecting outstanding payments from customers, which can be positive for cash flow management. The increase in the ratio from 2020 to 2021 suggests an improvement in the company's collection efficiency. However, the subsequent decrease in 2022 might indicate delays in receiving payments or changes in the company's credit policies.
Overall, although there have been fluctuations in the receivables turnover ratio, it is important for the company to continue monitoring and managing its accounts receivable effectively to ensure timely collection of outstanding balances.
Peer comparison
Dec 31, 2024