Laboratory Corporation of America Holdings (LH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,518,700 | 536,800 | 320,600 | 1,472,700 | 1,320,800 |
| Short-term investments | US$ in thousands | — | — | 109,400 | 10,900 | 73,000 |
| Total current liabilities | US$ in thousands | 3,330,200 | 3,225,200 | 3,078,500 | 2,782,900 | 3,078,500 |
| Cash ratio | 0.46 | 0.17 | 0.14 | 0.53 | 0.45 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,518,700K
+ $—K)
÷ $3,330,200K
= 0.46
The cash ratio of Laboratory Corporation of America Holdings has shown variability over the past five years. In December 31, 2020, the cash ratio was 0.45, indicating that the company had $0.45 in cash and cash equivalents for every $1 of current liabilities. By December 31, 2024, the ratio had increased to 0.46, suggesting a slight improvement in the company's ability to cover its short-term obligations with cash on hand. However, there were fluctuations in the intervening years, with a significant decrease to 0.14 by December 31, 2022, and a slight increase to 0.17 in December 31, 2023.
Overall, while the cash ratio has varied, it is essential to note that a higher cash ratio indicates a better ability to meet short-term obligations using cash reserves. However, it is also important to consider the industry norms and specific business requirements when evaluating the adequacy of a company's cash position.
Peer comparison
Dec 31, 2024