Laboratory Corporation of America Holdings (LH)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 536,800 | 320,600 | 1,472,700 | 1,320,800 | 337,500 |
| Short-term investments | US$ in thousands | — | 109,400 | 10,900 | 73,000 | 9,100 |
| Total current liabilities | US$ in thousands | 3,225,200 | 3,078,500 | 2,782,900 | 3,078,500 | 2,655,800 |
| Cash ratio | 0.17 | 0.14 | 0.53 | 0.45 | 0.13 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($536,800K
+ $—K)
÷ $3,225,200K
= 0.17
The cash ratio of Laboratory Corp. Of America Holdings has shown fluctuations over the past five years. The ratio was 0.37 in both December 31, 2023, and December 31, 2022. This indicates that for every dollar of current liabilities, the company had $0.37 in cash available to cover those obligations.
In December 31, 2021, the cash ratio improved significantly to 0.70, suggesting the company had a higher level of cash to cover its short-term liabilities compared to the previous years. This may reflect effective cash management or a buildup of cash reserves during that period.
The ratio decreased to 0.55 in December 31, 2020, but still indicated a reasonable level of liquidity relative to current liabilities. The decline from the previous year could be attributed to changes in the company's cash position or an increase in current liabilities.
In December 31, 2019, the cash ratio was at its lowest at 0.27, indicating a relatively lower level of cash available to cover short-term obligations. This could point to potential liquidity challenges or a smaller cash reserve compared to the other years.
Overall, the fluctuation in Laboratory Corp. Of America Holdings' cash ratio over the five-year period suggests varying levels of liquidity and potential changes in the company's cash management practices or financial performance. Investors and stakeholders may consider monitoring this ratio to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023