Laboratory Corporation of America Holdings (LH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 536,800 | 320,600 | 1,472,700 | 1,320,800 | 337,500 |
| Short-term investments | US$ in thousands | — | 109,400 | 10,900 | 73,000 | 9,100 |
| Receivables | US$ in thousands | 1,905,800 | 2,211,500 | 2,247,500 | 2,479,800 | 1,543,900 |
| Total current liabilities | US$ in thousands | 3,225,200 | 3,078,500 | 2,782,900 | 3,078,500 | 2,655,800 |
| Quick ratio | 0.76 | 0.86 | 1.34 | 1.26 | 0.71 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($536,800K
+ $—K
+ $1,905,800K)
÷ $3,225,200K
= 0.76
The quick ratio of Laboratory Corp. Of America Holdings has exhibited fluctuations over the past five years. The ratio was highest in 2021 at 1.77, signifying a strong ability to cover short-term liabilities with highly liquid assets. This was followed by a decline in 2022 to 1.35 but still indicating a healthy ability to meet short-term obligations with liquid assets. However, in 2023, the quick ratio dropped further to 1.02, approaching the lower end of the spectrum. This decrease could suggest a potential strain on the company's short-term liquidity position or a higher proportion of less liquid current assets relative to current liabilities. Overall, while the quick ratio has historically shown resilience, the recent decrease warrants further analysis to ensure the company's ability to easily meet its short-term financial obligations.
Peer comparison
Dec 31, 2023