Laboratory Corporation of America Holdings (LH)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,086,700 | 725,600 | 1,436,500 | 3,259,500 | 2,445,400 |
| Revenue | US$ in thousands | 13,008,900 | 12,161,600 | 11,863,900 | 16,120,900 | 13,978,500 |
| Operating profit margin | 8.35% | 5.97% | 12.11% | 20.22% | 17.49% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,086,700K ÷ $13,008,900K
= 8.35%
The operating profit margin of Laboratory Corporation of America Holdings has exhibited fluctuating trends over the last five years.
In 2020, the operating profit margin stood at 17.49%, indicating that for every dollar of revenue generated, the company retained approximately $0.175 as operating profit. This figure increased to 20.22% in 2021, showing an improvement in operational efficiency and profitability.
However, the trend reversed in 2022, with the operating profit margin dropping to 12.11%. This decline suggests potential challenges or increased costs impacting the company's ability to convert revenue into profits from its core operations.
The year 2023 witnessed a significant decrease in the operating profit margin to 5.97%, indicating a substantial reduction in profitability compared to previous years. This may raise concerns about the company's cost management or revenue generation strategies during that period.
By the end of 2024, there was a slight recovery in the operating profit margin, reaching 8.35%. Though this figure improved compared to the previous year, it remains below the levels observed in 2021 and 2020.
Overall, the fluctuating nature of Laboratory Corporation of America Holdings' operating profit margin raises questions about the company's ability to maintain consistent profitability and operational effectiveness over the past five years. Additional analysis would be required to understand the specific factors influencing these margin fluctuations and evaluate the company's financial performance comprehensively.
Peer comparison
Dec 31, 2024