Laboratory Corporation of America Holdings (LH)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 958,400 | 627,400 | 655,500 | 626,800 | 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 |
| Revenue (ttm) | US$ in thousands | 13,008,900 | 12,712,800 | 12,487,600 | 12,300,400 | 12,161,600 | 15,070,900 | 14,880,900 | 14,770,200 | 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 |
| Pretax margin | 7.37% | 4.94% | 5.25% | 5.10% | 4.99% | 5.78% | 6.88% | 8.37% | 10.23% | 15.76% | 17.02% | 17.29% | 19.38% | 22.24% | 23.56% | 22.90% | 15.87% | 10.20% | 0.62% | 0.38% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $958,400K ÷ $13,008,900K
= 7.37%
Laboratory Corporation of America Holdings' pretax margin has shown fluctuations over the years. The trend indicates an overall increase from March 31, 2020, to June 30, 2021, with a notable rise from 15.87% on December 31, 2020, to 23.56% on June 30, 2021. This peak was followed by a slight decline in the following quarters.
From a high of 23.56% on June 30, 2021, the pretax margin decreased to 7.37% on December 31, 2024, after which it started to recover. This decline could be indicative of various factors such as changes in revenue, costs, or operational efficiency during the period.
It is important for stakeholders to monitor the pretax margin closely as it reflects the company's ability to control expenses relative to its revenue before accounting for taxes. A sustained increase in pretax margin could suggest improved profitability and operational effectiveness, while a declining trend may raise concerns about cost management or revenue generation strategies.
Peer comparison
Dec 31, 2024