Laboratory Corporation of America Holdings (LH)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,765,400 | 3,954,200 | 5,120,900 | 4,695,000 | 4,625,000 | 4,371,800 | 5,030,800 | 5,229,500 | 5,330,500 | 6,020,500 | 5,693,500 | 5,638,100 | 5,125,400 | 4,085,600 | 3,413,200 | 2,891,100 | 2,981,200 | 2,987,800 | 2,848,600 | 2,885,300 |
| 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 |
| Current ratio | 1.17 | 1.36 | 2.35 | 1.63 | 1.50 | 1.73 | 1.90 | 1.98 | 1.92 | 2.08 | 2.13 | 1.67 | 1.66 | 1.36 | 1.12 | 1.18 | 1.12 | 1.17 | 1.14 | 1.14 |
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 shown some fluctuations over the past eight quarters. It decreased from 1.98 in Q1 2022 to 1.50 in Q4 2022, then increased to 2.35 in Q2 2023, followed by a decrease to 1.17 in Q4 2023.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign. The current ratio provides insight into the company's ability to cover its short-term obligations with its current assets.
Despite the fluctuations, the company has generally maintained its current ratio above 1, suggesting a relatively strong liquidity position. However, the recent decline in the current ratio in Q4 2023 may signal a potential tightening of liquidity or increased short-term obligations, and it would be important to monitor this trend in future quarters.
Peer comparison
Dec 31, 2023