Laboratory Corporation of America Holdings (LH)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 607,100 | 871,800 | 1,024,400 | 1,236,400 | 1,598,600 | 2,166,700 | 2,543,400 | 2,742,700 | 3,124,400 | 3,681,400 | 3,860,500 | 3,507,500 | 2,218,200 | 1,268,500 | 70,900 | 43,600 | 566,000 | 815,600 | 1,565,800 | 1,608,500 |
| 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 |
| Pretax margin | 4.71% | 5.51% | 6.56% | 7.97% | 10.23% | 15.76% | 17.02% | 17.29% | 19.38% | 22.24% | 23.56% | 22.90% | 15.87% | 10.20% | 0.62% | 0.38% | 4.90% | 7.16% | 13.87% | 14.26% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $607,100K ÷ $12,901,700K
= 4.71%
The pretax margin of Laboratory Corp. Of America Holdings has shown a decreasing trend over the past eight quarters, declining from 17.31% in Q1 2022 to 4.68% in Q4 2023. This indicates that the company's profitability before accounting for taxes has been decreasing over this period. The substantial drop in pretax margin from Q1 2022 to Q2 2023 is noteworthy, as it fell from 17.31% to 6.73% within just four quarters.
The declining pretax margin suggests that Laboratory Corp. Of America Holdings may be facing challenges in controlling costs or generating sufficient revenue to maintain previous levels of profitability. The company may need to focus on improving operational efficiency, cost management, or revenue growth strategies to reverse this downward trend and enhance its overall financial health.
Peer comparison
Dec 31, 2023