Laboratory Corporation of America Holdings (LH)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 3,624,400 | 3,549,500 | 3,496,300 | 3,412,100 | 3,364,900 | 4,017,800 | 4,052,800 | 4,153,100 | 4,535,900 | 4,436,600 | 4,935,900 | 5,258,200 | 5,624,300 | 6,154,200 | 6,328,100 | 5,823,800 | 4,952,800 | 3,868,600 | 3,126,500 | 3,190,800 |
| Revenue (ttm) | US$ in thousands | 13,008,900 | 12,712,800 | 12,487,600 | 12,300,400 | 12,161,600 | 15,070,900 | 14,880,900 | 14,770,200 | 15,632,000 | 13,745,500 | 14,941,300 | 15,859,000 | 16,120,900 | 16,554,600 | 16,388,100 | 15,316,200 | 13,978,500 | 12,442,100 | 11,474,500 | 11,587,400 |
| Gross profit margin | 27.86% | 27.92% | 28.00% | 27.74% | 27.67% | 26.66% | 27.23% | 28.12% | 29.02% | 32.28% | 33.04% | 33.16% | 34.89% | 37.18% | 38.61% | 38.02% | 35.43% | 31.09% | 27.25% | 27.54% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $3,624,400K ÷ $13,008,900K
= 27.86%
The gross profit margin of Laboratory Corporation of America Holdings has shown fluctuations over the period, ranging from a low of 27.25% in June 2020 to a high of 38.61% in June 2021. The trend of the gross profit margin generally increased from the second quarter of 2020 to the second quarter of 2021, indicating an improvement in the company's ability to generate profit from its core operations.
However, after reaching its peak in June 2021, the gross profit margin began to decline gradually, with some fluctuations, and stood at 27.86% by December 2024. This decrease implies that the company's cost of goods sold has been rising relative to its revenue, impacting the profitability at the gross level.
It is worth noting that despite the fluctuations, the gross profit margin of Laboratory Corporation of America Holdings has remained relatively stable around the 27-38% range over the period under review. This suggests a certain level of consistency in the company's ability to control its production costs and maintain a healthy margin of profit from its core business activities.
Peer comparison
Dec 31, 2024