Laboratory Corporation of America Holdings (LH)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,008,900 | 12,712,800 | 12,487,600 | 12,300,400 | 12,161,600 | 15,070,900 | 14,880,900 | 14,770,200 | 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 |
| Total current assets | US$ in thousands | 4,806,500 | 4,909,900 | 3,571,300 | 3,456,500 | 3,765,400 | 3,954,200 | 5,120,900 | 4,695,000 | 4,625,000 | 4,371,800 | 5,030,800 | 5,229,500 | 5,330,500 | 6,020,500 | 5,693,500 | 5,638,100 | 5,125,400 | 4,085,600 | 3,413,200 | 2,891,100 |
| Total current liabilities | US$ in thousands | 3,330,200 | 3,412,000 | 4,064,700 | 3,941,500 | 3,225,200 | 2,900,800 | 2,183,300 | 2,885,600 | 3,078,500 | 2,522,300 | 2,642,900 | 2,641,500 | 2,782,900 | 2,888,400 | 2,667,100 | 3,368,700 | 3,078,500 | 3,009,900 | 3,034,400 | 2,458,000 |
| Working capital turnover | 8.81 | 8.49 | — | — | 22.51 | 14.31 | 5.07 | 8.16 | 10.11 | 7.43 | 6.26 | 6.13 | 6.33 | 5.29 | 5.42 | 6.75 | 6.83 | 11.57 | 30.29 | 26.75 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,008,900K ÷ ($4,806,500K – $3,330,200K)
= 8.81
The working capital turnover of Laboratory Corporation of America Holdings has fluctuated over the past few years, indicating varying efficiency in managing its working capital.
The ratio was high in March 2020 at 26.75, suggesting the company was able to generate $26.75 in revenue for every dollar of working capital invested during that period. This high turnover ratio could signal effective management of working capital.
Subsequently, the ratio increased to 30.29 in June 2020, indicating further efficiency in utilizing its working capital. However, the ratio dropped significantly in September 2020 to 11.57, which may indicate a slowdown in generating revenue from working capital.
The trend continued to decline, reaching 5.07 in June 2023, which could raise concerns about the company's ability to efficiently utilize its working capital. The ratio increased to 22.51 in December 2023, suggesting a significant improvement in working capital efficiency.
The ratio remained stable around 8.81 in December 2024, indicating that the company was generating approximately $8.81 in revenue for every dollar of working capital invested, which is a positive sign.
Overall, the working capital turnover of Laboratory Corporation of America Holdings has shown fluctuations, and it is essential for the company to consistently monitor and manage its working capital to sustain efficient operations and profitability.
Peer comparison
Dec 31, 2024