Laboratory Corporation of America Holdings (LH)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 725,600 | 1,436,500 | 3,259,500 | 2,445,400 | 1,330,200 |
| Revenue | US$ in thousands | 12,161,600 | 11,863,900 | 16,120,900 | 13,978,500 | 11,554,800 |
| Operating profit margin | 5.97% | 12.11% | 20.22% | 17.49% | 11.51% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $725,600K ÷ $12,161,600K
= 5.97%
The operating profit margin of Laboratory Corp. Of America Holdings has displayed fluctuations over the last five years. It decreased from 11.98% in 2019 to 9.24% in 2023, indicating a decline in the company's ability to generate profits from its operations relative to revenue. The significant drop in operating profit margin from 2021 (20.49%) to 2023 (9.24%) suggests challenges in controlling operating expenses or a decrease in revenue growth that impacted profitability. In general, a declining operating profit margin may raise concerns about the company's operational efficiency and cost management strategies, warranting further examination of the company's financial health and business operations.
Peer comparison
Dec 31, 2023