Laboratory Corporation of America Holdings (LH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 16,725,100 | 16,886,000 | 17,718,700 | 20,200,000 | 20,155,100 | 19,826,000 | 20,403,100 | 20,728,400 | 20,385,400 | 20,866,500 | 20,417,100 | 20,417,100 | 20,071,700 | 18,739,600 | 17,849,100 | 17,298,400 | 18,046,400 | 17,847,800 | 17,744,400 | 16,970,800 |
| Operating ROA | 4.41% | 7.26% | 7.60% | 7.47% | 9.21% | 11.20% | 12.81% | 13.94% | 15.99% | 18.32% | 20.09% | 18.10% | 12.18% | 7.94% | 4.38% | 4.74% | 7.37% | 7.29% | 7.35% | 7.89% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $736,800K ÷ $16,725,100K
= 4.41%
The operating return on assets (operating ROA) for Laboratory Corp. Of America Holdings has been gradually decreasing over the past eight quarters. Starting at a high of 14.12% in Q1 2022, the operating ROA has experienced a consistent downward trend, reaching its lowest point of 6.72% in Q4 2023. This decline suggests that the company may be experiencing challenges in generating operating income relative to its assets, which could be attributed to various factors such as operational inefficiencies, increased operating expenses, or a decline in revenue generation. Management may need to closely monitor and address these issues to improve the company's operating performance and profitability.
Peer comparison
Dec 31, 2023