Laboratory Corporation of America Holdings (LH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,765,400 | 4,625,000 | 5,330,500 | 5,125,400 | 2,981,200 |
| Total current liabilities | US$ in thousands | 3,225,200 | 3,078,500 | 2,782,900 | 3,078,500 | 2,655,800 |
| Current ratio | 1.17 | 1.50 | 1.92 | 1.66 | 1.12 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,765,400K ÷ $3,225,200K
= 1.17
The current ratio of Laboratory Corp. Of America Holdings has exhibited fluctuations over the past five years, ranging from 1.12 in 2019 to 1.92 in 2021. The current ratio helps assess the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates stronger liquidity and a better ability to cover short-term liabilities.
In 2023, the current ratio decreased to 1.17 from 1.50 in 2022, signaling a decline in the company's short-term liquidity position. This decrease could be due to changes in the company's current assets or liabilities. It is important to monitor the trend of the current ratio over time to understand the company's overall financial health and its ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2023