Laboratory Corporation of America Holdings (LH)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,161,600 | 11,863,900 | 16,120,900 | 13,978,500 | 11,554,800 |
| Receivables | US$ in thousands | 1,905,800 | 2,211,500 | 2,247,500 | 2,479,800 | 1,543,900 |
| Receivables turnover | 6.38 | 5.36 | 7.17 | 5.64 | 7.48 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,161,600K ÷ $1,905,800K
= 6.38
The receivables turnover ratio for Laboratory Corp. Of America Holdings has fluctuated over the past five years. The ratio indicates how efficiently the company is able to collect cash from its credit customers.
In 2023, the receivables turnover ratio was 5.79, which represents an improvement from the previous year's ratio of 4.93. This increase suggests that the company was more effective in converting its accounts receivable into cash during the year.
Comparing the 2023 ratio to earlier years, it is slightly higher than the ratio in 2021 and notably higher than in 2020. This indicates that the company has generally been improving in its collection efforts over the last three years.
However, when looking at the ratio in isolation, it is important to consider industry benchmarks and trends over time for a more thorough analysis. Overall, the upward trend in Laboratory Corp. Of America Holdings' receivables turnover ratio signals a positive development in the management of its accounts receivable and cash flow efficiency.
Peer comparison
Dec 31, 2023