Laboratory Corporation of America Holdings (LH)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,518,700 | 536,800 | 320,600 | 1,472,700 | 1,320,800 |
| Short-term investments | US$ in thousands | — | — | 109,400 | 10,900 | 73,000 |
| Receivables | US$ in thousands | 1,936,500 | 1,905,800 | 2,211,500 | 2,247,500 | 2,479,800 |
| Total current liabilities | US$ in thousands | 3,330,200 | 3,225,200 | 3,078,500 | 2,782,900 | 3,078,500 |
| Quick ratio | 1.04 | 0.76 | 0.86 | 1.34 | 1.26 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,518,700K
+ $—K
+ $1,936,500K)
÷ $3,330,200K
= 1.04
The quick ratio of Laboratory Corporation of America Holdings has shown some fluctuations over the years. In December 31, 2020, the quick ratio was at 1.26, indicating that the company had sufficient liquid assets to cover its short-term liabilities.
By December 31, 2021, the quick ratio improved to 1.34, suggesting a better ability to meet short-term obligations with liquid assets. However, there was a significant decrease in the quick ratio to 0.86 by December 31, 2022, which may raise concerns about the company's liquidity position.
Further, the quick ratio continued to decline to 0.76 by December 31, 2023, falling below the ideal threshold of 1. This decrease could indicate potential liquidity challenges that may affect the company's ability to meet short-term financial obligations.
In December 31, 2024, the quick ratio increased slightly to 1.04, showing some improvement from the previous year but still below the desired benchmark of 1. Overall, the trend in the quick ratio of Laboratory Corporation of America Holdings highlights the importance of monitoring liquidity levels to ensure the company can meet its short-term liabilities efficiently.
Peer comparison
Dec 31, 2024