Laboratory Corporation of America Holdings (LH)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 736,800 | 1,225,500 | 1,347,200 | 1,509,700 | 1,856,600 | 2,221,300 | 2,614,200 | 2,889,500 | 3,259,500 | 3,822,100 | 4,102,300 | 3,695,900 | 2,445,400 | 1,488,600 | 781,400 | 819,400 | 1,330,200 | 1,301,500 | 1,305,000 | 1,338,500 |
| 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 |
| Operating profit margin | 5.71% | 7.75% | 8.62% | 9.73% | 11.88% | 16.16% | 17.50% | 18.22% | 20.22% | 23.09% | 25.03% | 24.13% | 17.49% | 11.96% | 6.81% | 7.07% | 11.51% | 11.43% | 11.56% | 11.87% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $736,800K ÷ $12,901,700K
= 5.71%
The operating profit margin of Laboratory Corp. Of America Holdings has shown a declining trend over the past several quarters, starting at 18.46% in Q1 2022 and decreasing to 9.24% in Q4 2023. This downward trend indicates that the company's profitability from its core operations has been decreasing over time.
The operating profit margin measures the proportion of revenue that remains as operating profit after accounting for operating expenses. The decreasing trend in the operating profit margin could suggest challenges in controlling costs or declining efficiency in generating profits from its core business activities.
It is important for stakeholders to closely monitor this trend and understand the underlying factors contributing to the decline in the operating profit margin to make informed decisions about the company's financial health and future prospects.
Peer comparison
Dec 31, 2023