Laboratory Corporation of America Holdings (LH)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 606,500 | 1,581,100 | 3,124,400 | 2,218,200 | 1,103,800 |
| Revenue | US$ in thousands | 12,161,600 | 11,863,900 | 16,120,900 | 13,978,500 | 11,554,800 |
| Pretax margin | 4.99% | 13.33% | 19.38% | 15.87% | 9.55% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $606,500K ÷ $12,161,600K
= 4.99%
The pretax margin of Laboratory Corp. Of America Holdings has fluctuated over the past five years, ranging from 4.68% in 2023 to 19.39% in 2021. The decreasing trend observed from 2019 to 2023 indicates a decline in the company's ability to generate profit before taxes relative to its revenue during this period. This could be indicative of various factors such as increasing operating expenses, declining gross margins, or changes in the company's pricing strategy. Further analysis of the company's financial performance and operational efficiency is recommended to understand the reasons behind these fluctuations in pretax margin.
Peer comparison
Dec 31, 2023