Laboratory Corporation of America Holdings (LH)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 3,489,500 | 4,142,400 | 4,177,400 | 4,277,700 | 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 | 3,252,500 | 3,204,200 | 3,176,800 | 3,187,100 |
| Revenue (ttm) | US$ in thousands | 12,901,700 | 15,811,000 | 15,621,000 | 15,510,300 | 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 | 11,554,800 | 11,388,900 | 11,291,700 | 11,276,300 |
| Gross profit margin | 27.05% | 26.20% | 26.74% | 27.58% | 29.02% | 32.28% | 33.04% | 33.16% | 34.89% | 37.18% | 38.61% | 38.02% | 35.43% | 31.09% | 27.25% | 27.54% | 28.15% | 28.13% | 28.13% | 28.26% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $3,489,500K ÷ $12,901,700K
= 27.05%
Laboratory Corp. Of America Holdings' gross profit margin has shown a declining trend over the past few quarters. The Q4 2023 gross profit margin of 27.67% is lower compared to the previous quarter, indicating a decrease in profitability. This downward trend started in Q1 2023, following a peak gross profit margin of 33.16% in Q1 2022.
The decreasing gross profit margins could be a potential concern as it may indicate challenges in managing production costs or pricing strategies. Further analysis of the company's cost structure and revenue generation is recommended to identify the specific factors contributing to the declining trend in gross profit margin.
Peer comparison
Dec 31, 2023