Laboratory Corporation of America Holdings (LH)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,806,500 | 3,765,400 | 4,625,000 | 5,330,500 | 5,125,400 |
| Total current liabilities | US$ in thousands | 3,330,200 | 3,225,200 | 3,078,500 | 2,782,900 | 3,078,500 |
| Current ratio | 1.44 | 1.17 | 1.50 | 1.92 | 1.66 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,806,500K ÷ $3,330,200K
= 1.44
The current ratio of Laboratory Corporation of America Holdings has exhibited fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 1.66, indicating that the company had $1.66 in current assets for every dollar of current liabilities. This ratio increased to 1.92 by the end of 2021, suggesting an improvement in the company's short-term liquidity position.
However, in the subsequent years, the current ratio declined, reaching 1.50 by December 31, 2022, 1.17 by December 31, 2023, and 1.44 by December 31, 2024. These decreasing trends may raise concerns about the company's ability to meet its short-term obligations using its current assets.
Overall, the fluctuation in the current ratio indicates changes in the company's liquidity position and its ability to cover short-term liabilities. Further analysis of the underlying components of current assets and liabilities would be necessary to fully assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2024