Laboratory Corporation of America Holdings (LH)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 418,000 | 1,279,100 | 2,377,300 | 1,556,100 | 823,800 |
| Revenue | US$ in thousands | 12,161,600 | 11,863,900 | 16,120,900 | 13,978,500 | 11,554,800 |
| Net profit margin | 3.44% | 10.78% | 14.75% | 11.13% | 7.13% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $418,000K ÷ $12,161,600K
= 3.44%
The net profit margin of Laboratory Corp. Of America Holdings has shown fluctuating trends over the past five years. In 2023, the net profit margin was 3.44%, a significant decrease from the previous year's margin of 8.60%. This decline may indicate challenges or inefficiencies affecting the company's ability to generate profits relative to its revenue.
Comparing the current net profit margin to historical data reveals a downward trend since 2021 when the margin was at its peak at 14.75%. The subsequent years have seen a decrease in profitability, with the margins at 11.13% in 2020 and 7.13% in 2019.
This downward trend in net profit margin suggests that Laboratory Corp. Of America Holdings may be experiencing challenges in managing its costs or maintaining revenue growth, leading to a reduced ability to generate profits relative to its revenue. Further analysis of the company's financial statements and operational efficiency may be necessary to identify the root causes of this trend and implement strategies for improvement.
Peer comparison
Dec 31, 2023