Laboratory Corporation of America Holdings (LH)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,518,700 | 1,517,300 | 265,100 | 99,300 | 536,800 | 727,900 | 1,930,600 | 393,900 | 320,600 | 409,900 | 1,068,800 | 1,233,500 | 1,472,700 | 2,036,500 | 1,963,200 | 1,890,800 | 1,320,800 | 667,200 | 557,000 | 323,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 109,400 | — | — | 5,900 | 10,900 | 18,500 | 800 | 85,000 | 73,000 | 70,000 | 2,300 | 9,100 |
| 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 |
| Cash ratio | 0.46 | 0.44 | 0.07 | 0.03 | 0.17 | 0.25 | 0.88 | 0.14 | 0.14 | 0.16 | 0.40 | 0.47 | 0.53 | 0.71 | 0.74 | 0.59 | 0.45 | 0.24 | 0.18 | 0.14 |
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 displayed fluctuations over the analyzed period. Starting at a low of 0.14 as of March 31, 2020, the ratio gradually increased, reaching its peak at 0.88 on June 30, 2023. This upward trend indicates an improvement in the company's ability to cover its short-term obligations with its readily available cash and cash equivalents.
However, after the peak in June 2023, the cash ratio experienced a sharp decline to 0.03 by March 31, 2024. This significant drop suggests a decrease in the company's liquidity position and its ability to meet short-term financial obligations solely through its cash holdings.
The cash ratio is an important liquidity metric as it provides insights into the company's ability to weather financial uncertainties and seize investment opportunities. Despite the fluctuations observed in Laboratory Corporation of America Holdings' cash ratio, management should continue to monitor and manage the firm's cash position to ensure it maintains a healthy balance of liquidity for operational needs and strategic investments.
Peer comparison
Dec 31, 2024