Laboratory Corporation of America Holdings (LH)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,518,700 | 1,517,300 | 265,100 | 99,300 | 536,800 | 727,900 | 1,930,600 | 393,900 | 320,600 | 409,900 | 1,068,800 | 1,233,500 | 1,472,700 | 2,036,500 | 1,963,200 | 1,890,800 | 1,320,800 | 667,200 | 557,000 | 323,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 109,400 | — | — | 5,900 | 10,900 | 18,500 | 800 | 85,000 | 73,000 | 70,000 | 2,300 | 9,100 |
| Receivables | US$ in thousands | 1,936,500 | 2,056,900 | 2,087,100 | 2,076,300 | 1,905,800 | 1,948,100 | 1,893,900 | 2,334,000 | 2,211,500 | 2,153,300 | 2,205,000 | 2,226,400 | 2,247,500 | 2,335,400 | 2,210,100 | 2,323,500 | 2,479,800 | 2,095,200 | 1,661,000 | 1,482,200 |
| Total current liabilities | US$ in thousands | 3,330,200 | 3,412,000 | 4,064,700 | 3,941,500 | 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 |
| Quick ratio | 1.04 | 1.05 | 0.58 | 0.55 | 0.76 | 0.92 | 1.75 | 0.95 | 0.86 | 1.02 | 1.24 | 1.31 | 1.34 | 1.52 | 1.57 | 1.28 | 1.26 | 0.94 | 0.73 | 0.74 |
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 fluctuations over the period analyzed. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company can cover its short-term liabilities with its quick assets.
From March 31, 2020, to June 30, 2022, the trend shows an improvement in the quick ratio, with values consistently above 1. This indicates a strengthening liquidity position during this period. However, from September 30, 2022, to June 30, 2024, the quick ratio declined gradually before showing some fluctuations.
Specifically, the quick ratio reached a peak of 1.75 on June 30, 2023, indicating a strong ability to cover short-term obligations with quick assets. On the other hand, the lowest quick ratio was recorded on March 31, 2024, at 0.55, suggesting a potential liquidity strain.
Overall, fluctuations in the quick ratio signal changes in the company's liquidity position, reflecting varying levels of short-term asset coverage for liabilities. Management should monitor this ratio regularly to ensure the company can meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024