Laboratory Corporation of America Holdings (LH)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 337,500 | 361,100 | 265,400 | 348,800 |
| Short-term investments | US$ in thousands | — | — | — | — | 109,400 | — | — | 5,900 | 10,900 | 18,500 | 82,000 | 85,000 | 73,000 | 70,000 | — | — | 9,100 | 22,000 | 29,800 | — |
| Total current liabilities | US$ in thousands | 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 | 2,655,800 | 2,554,900 | 2,495,800 | 2,526,900 |
| Cash ratio | 0.17 | 0.25 | 0.88 | 0.14 | 0.14 | 0.16 | 0.40 | 0.47 | 0.53 | 0.71 | 0.77 | 0.59 | 0.45 | 0.24 | 0.18 | 0.13 | 0.13 | 0.15 | 0.12 | 0.14 |
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 shows variability over the quarters analyzed. The lowest cash ratio was observed in Q4 2023 at 0.37, indicating that the company had $0.37 in cash for every dollar of current liabilities during that period. This implies a relatively lower liquidity position and potential challenges in meeting short-term obligations solely from cash on hand.
On the other hand, the highest cash ratio was recorded in Q2 2023 at 1.19, suggesting a substantial improvement in liquidity compared to other quarters. This could indicate better cash management practices or a buildup of cash reserves during that period.
Overall, the fluctuation in the cash ratio over the quarters may point to variations in the company's ability to cover its short-term obligations with available cash. Investors and stakeholders would need to monitor these trends closely to assess the company's liquidity position and financial health accurately.
Peer comparison
Dec 31, 2023