Laboratory Corporation of America Holdings (LH)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,901,700 | 15,811,000 | 15,621,000 | 15,510,300 | 15,632,000 | 13,745,500 | 14,941,300 | 15,859,000 | 16,120,900 | 16,554,600 | 16,388,100 | 15,316,200 | 13,978,500 | 12,442,100 | 11,474,500 | 11,587,400 | 11,554,800 | 11,388,900 | 11,291,700 | 11,276,300 |
| Receivables | US$ in thousands | 1,905,800 | 1,948,100 | 1,893,900 | 2,334,000 | 2,211,500 | 2,153,300 | 2,205,000 | 2,226,400 | 2,247,500 | 2,335,400 | 2,210,100 | 2,323,500 | 2,479,800 | 2,095,200 | 1,661,000 | 1,482,200 | 1,543,900 | 1,617,200 | 1,576,100 | 1,563,000 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $12,901,700K ÷ $1,905,800K
= 6.77
The receivables turnover ratio for Laboratory Corp. Of America Holdings has shown some fluctuations over the past eight quarters. In Q4 2023, the receivables turnover was 5.79, indicating that the company collected its accounts receivable approximately 5.79 times during the quarter. This ratio increased from the previous quarter of 6.56 in Q3 2023 but is still lower than the peak of 6.90 in Q2 2023.
Compared to the same quarter the previous year (Q4 2022 at 4.93), the receivables turnover has improved, reflecting a more efficient collection process. Overall, the company's ability to convert its accounts receivable into cash has been relatively stable, with some variations in recent quarters. It is important for the company to continue monitoring this ratio to ensure timely collection of receivables and efficient management of its working capital.
Peer comparison
Dec 31, 2023