Laboratory Corporation of America Holdings (LH)

Net 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
Net income (ttm)	US$ in thousands	418,000	661,200	830,700	1,000,400	1,279,100	1,756,000	1,990,500	2,099,300	2,377,300	2,762,600	2,878,700	2,642,900	1,556,100	844,900	-175,700	-216,900	285,900	216,700	852,700	896,100
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
Net profit margin		3.24%	4.18%	5.32%	6.45%	8.18%	12.78%	13.32%	13.24%	14.75%	16.69%	17.57%	17.26%	11.13%	6.79%	-1.53%	-1.87%	2.47%	1.90%	7.55%	7.95%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $418,000K ÷ $12,901,700K
= 3.24%

The net profit margin of Laboratory Corp. Of America Holdings has shown a decreasing trend over the past quarters, indicating a decline in the company's profitability. The net profit margin decreased from 13.24% in Q1 2022 to 3.44% in Q4 2023. This downward trend suggests that the company may be facing challenges in controlling costs or generating sufficient revenue to maintain previous levels of profitability. Further analysis and investigation into the factors impacting the profitability of the company are recommended to address and potentially reverse this trend.

Peer comparison

Dec 31, 2023

Company name

Symbol

Net profit margin

Laboratory Corporation of America Holdings

3.24%

Fulgent Genetics Inc

FLGT

-58.03%

Quest Diagnostics Incorporated