Laboratory Corporation of America Holdings (LH)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,624,400 | 3,364,900 | 3,708,900 | 5,624,300 | 4,952,800 |
| Revenue | US$ in thousands | 13,008,900 | 12,161,600 | 11,863,900 | 16,120,900 | 13,978,500 |
| Gross profit margin | 27.86% | 27.67% | 31.26% | 34.89% | 35.43% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,624,400K ÷ $13,008,900K
= 27.86%
Based on the data provided, Laboratory Corporation of America Holdings has shown a declining trend in its gross profit margin over the specified period. The gross profit margin decreased from 35.43% as of December 31, 2020, to 27.86% as of December 31, 2024.
The gross profit margin represents the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of the company in managing its production costs. The downward trend in the gross profit margin suggests that the company may be facing challenges in controlling its production costs relative to its sales revenue.
A declining gross profit margin could indicate pricing pressures, increased competition, rising input costs, or inefficient manufacturing processes. It is essential for the company to monitor and address the factors contributing to this decline to maintain profitability and competitiveness in the market.
Overall, the decreasing gross profit margin of Laboratory Corporation of America Holdings over the period raises concerns about its cost management strategies and underscores the importance of implementing measures to improve operational efficiency and profitability.
Peer comparison
Dec 31, 2024