Laboratory Corporation of America Holdings (LH)
Total asset 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 |
| Total assets | US$ in thousands | 16,725,100 | 20,155,100 | 20,385,400 | 20,071,700 | 18,046,400 |
| Total asset turnover | 0.73 | 0.59 | 0.79 | 0.70 | 0.64 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,161,600K ÷ $16,725,100K
= 0.73
The total asset turnover ratio for Laboratory Corp. Of America Holdings has shown some fluctuation over the past five years, ranging from 0.64 to 0.79. The ratio indicates how efficiently the company is utilizing its total assets to generate revenue. A higher ratio typically suggests better efficiency in asset utilization.
In 2023, the total asset turnover ratio decreased slightly to 0.73 from 0.74 in 2022, indicating a slightly lower level of efficiency in generating revenue from its total assets. However, it is important to note that the ratio remains relatively stable within the range observed over the past five years.
The declining trend in total asset turnover from 0.79 in 2021 to 0.73 in 2023 may suggest a slight decrease in the company's ability to generate sales relative to its total assets. Further analysis of the company's operational and financial performance would be necessary to understand the factors contributing to this trend and whether any strategic actions are needed to improve asset utilization efficiency in the future.
Peer comparison
Dec 31, 2023