Laboratory Corporation of America Holdings (LH)
Total asset 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 |
| Total assets | US$ in thousands | 18,379,000 | 16,725,100 | 20,155,100 | 20,385,400 | 20,071,700 |
| Total asset turnover | 0.71 | 0.73 | 0.59 | 0.79 | 0.70 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $13,008,900K ÷ $18,379,000K
= 0.71
The total asset turnover ratio for Laboratory Corporation of America Holdings has fluctuated over the past five years. In 2020, the ratio was 0.70, indicating that the company generated $0.70 in revenue for every dollar of assets. This ratio increased to 0.79 in 2021, suggesting improved efficiency in utilizing its assets to generate revenue.
However, there was a decline in the total asset turnover ratio in 2022 to 0.59, which may indicate some inefficiencies in asset utilization during that year. The ratio then bounced back to 0.73 in 2023 and remained relatively stable at 0.71 in 2024.
Overall, Laboratory Corporation of America Holdings has shown mixed performance in effectively using its assets to generate revenue over the past five years. It is important for the company to continue monitoring and improving its asset turnover ratio to ensure optimal efficiency and profitability.
Peer comparison
Dec 31, 2024