Laboratory Corporation of America Holdings (LH)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 337,500 | 361,100 | 265,400 | 348,800 |
| Short-term investments | US$ in thousands | — | — | — | — | 109,400 | — | — | 5,900 | 10,900 | 18,500 | 82,000 | 85,000 | 73,000 | 70,000 | — | — | 9,100 | 22,000 | 29,800 | — |
| Receivables | US$ in thousands | 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 | 1,543,900 | 1,617,200 | 1,576,100 | 1,563,000 |
| 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 |
| Quick ratio | 0.76 | 0.92 | 1.75 | 0.95 | 0.86 | 1.02 | 1.24 | 1.31 | 1.34 | 1.52 | 1.60 | 1.28 | 1.26 | 0.94 | 0.73 | 0.73 | 0.71 | 0.78 | 0.75 | 0.76 |
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 shown some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 indicates that the company has just enough liquid assets to cover its current liabilities.
In Q4 2023, the quick ratio was 1.02, which suggests that the company may have had a slight liquidity issue as its liquid assets were barely enough to cover its short-term liabilities. However, in Q3 2023, the quick ratio improved to 1.20, indicating a better ability to meet short-term obligations.
The quick ratio spiked significantly in Q2 2023 to 2.12, reflecting a strong liquidity position and a substantial increase in liquid assets relative to current liabilities. This may have been due to an increase in cash or highly liquid assets during that period.
In Q1 2023, the quick ratio was 1.46, indicating a good liquidity position with liquid assets comfortably covering short-term liabilities. Comparing Q1 2023 to Q4 2023, there was a slight decrease in the quick ratio, but the company's liquidity position remained fairly strong.
Overall, the trend in the quick ratio shows some variability, with periods of stronger and weaker liquidity positions. It is important for stakeholders to monitor the company's ability to maintain sufficient liquid assets to cover short-term obligations to ensure ongoing financial stability.
Peer comparison
Dec 31, 2023