Laboratory Corporation of America Holdings (LH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.86% | 27.67% | 31.26% | 34.89% | 35.43% |
| Operating profit margin | 8.35% | 5.97% | 12.11% | 20.22% | 17.49% |
| Pretax margin | 7.37% | 4.99% | 13.33% | 19.38% | 15.87% |
| Net profit margin | 5.73% | 3.44% | 10.78% | 14.75% | 11.13% |
The Gross profit margin for Laboratory Corporation of America Holdings has shown a declining trend over the years, from 35.43% in December 31, 2020, to 27.86% in December 31, 2024. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
The Operating profit margin experienced fluctuations with an increase from 17.49% in December 31, 2020, to 20.22% in December 31, 2021, followed by a decline to 8.35% in December 31, 2024. This indicates the company's ability to generate profits from its core operations, with some variability in efficiency over the period.
The Pretax margin also exhibited fluctuations, with an increase from 15.87% in December 31, 2020, to 19.38% in December 31, 2021, and then a decline to 7.37% in December 31, 2024. This ratio reflects the company's ability to generate profits before accounting for taxes, with some volatility in profitability levels.
The Net profit margin for Laboratory Corporation of America Holdings declined from 11.13% in December 31, 2020, to 5.73% in December 31, 2024. This measure of profitability after all expenses, including taxes, highlights the company's ability to generate earnings for its shareholders, which also experienced a decrease over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.91% | 4.34% | 7.13% | 15.99% | 12.18% |
| Return on assets (ROA) | 4.06% | 2.50% | 6.35% | 11.66% | 7.75% |
| Return on total capital | 8.72% | 6.76% | 11.64% | 21.27% | 16.33% |
| Return on equity (ROE) | 9.26% | 5.31% | 12.67% | 23.14% | 16.49% |
Laboratory Corporation of America Holdings has shown fluctuations in profitability ratios over the years. The Operating Return on Assets (Operating ROA) increased from 12.18% in 2020 to 15.99% in 2021 but then decreased to 7.13% in 2022 and further to 4.34% in 2023. However, it slightly improved to 5.91% by the end of 2024.
Return on Assets (ROA) also displayed a similar pattern, rising from 7.75% in 2020 to 11.66% in 2021, but then declining to 6.35% in 2022 and significantly dropping to 2.50% in 2023 before recovering to 4.06% in 2024.
Return on Total Capital increased from 16.33% in 2020 to 21.27% in 2021, followed by a decrease to 11.64% in 2022, and further dropped to 6.76% in 2023. It then improved slightly to 8.72% by the end of 2024.
Return on Equity (ROE) exhibited similar trends, starting at 16.49% in 2020 and peaking at 23.14% in 2021, before decreasing to 12.67% in 2022 and falling further to 5.31% in 2023. However, it showed a slight improvement to 9.26% by the end of 2024.
Overall, the profitability ratios of Laboratory Corporation of America Holdings have been volatile, reflecting fluctuations in the company's ability to generate profits from its assets and capital investments over the years.