Laboratory Corporation of America Holdings (LH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.86% | 27.92% | 28.00% | 27.74% | 27.67% | 26.66% | 27.23% | 28.12% | 29.02% | 32.28% | 33.04% | 33.16% | 34.89% | 37.18% | 38.61% | 38.02% | 35.43% | 31.09% | 27.25% | 27.54% |
| Operating profit margin | 8.35% | 5.88% | 5.97% | 5.83% | 5.97% | 8.06% | 8.98% | 10.15% | 11.88% | 16.16% | 17.50% | 18.22% | 20.22% | 23.09% | 25.03% | 24.13% | 17.49% | 11.96% | 6.81% | 7.07% |
| 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% |
| Net profit margin | 5.73% | 3.43% | 3.60% | 3.52% | 3.44% | 4.39% | 5.58% | 6.77% | 8.18% | 12.78% | 13.32% | 13.24% | 14.75% | 16.69% | 17.57% | 17.26% | 11.13% | 6.79% | -1.53% | -1.87% |
The profitability ratios of Laboratory Corporation of America Holdings have shown fluctuating trends over the period under review.
- Gross profit margin improved steadily from March 2020 to March 2021, peaking at 38.61%, but subsequently declined to 27.86% by December 2024.
- Operating profit margin followed a similar pattern, reaching a high of 25.03% in June 2021 before decreasing to 8.35% by December 2024.
- Pretax margin also exhibited a decreasing trend over the years, dropping from 23.56% in June 2021 to 4.94% by September 2024.
- Net profit margin, after reaching a peak of 17.57% in June 2021, gradually declined to 5.73% by December 2024.
These ratios indicate fluctuations in the company's profitability, with varying levels of operational efficiency and cost control over the years. It is important for stakeholders to monitor these trends to assess the company's financial performance and sustainability in the long run.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.91% | 4.02% | 4.46% | 4.34% | 4.34% | 7.19% | 7.54% | 7.42% | 9.21% | 11.20% | 12.81% | 13.94% | 15.99% | 18.32% | 20.09% | 18.10% | 12.18% | 7.94% | 4.38% | 4.74% |
| Return on assets (ROA) | 4.06% | 2.34% | 2.69% | 2.62% | 2.50% | 3.92% | 4.69% | 4.95% | 6.35% | 8.86% | 9.76% | 10.13% | 11.66% | 13.24% | 14.10% | 12.94% | 7.75% | 4.51% | -0.98% | -1.25% |
| Return on total capital | 8.72% | 6.07% | 7.68% | 7.47% | 6.76% | 8.72% | 8.83% | 10.30% | 11.75% | 15.17% | 17.21% | 18.31% | 21.27% | 24.34% | 25.96% | 24.69% | 16.33% | 10.93% | 2.38% | 2.21% |
| Return on equity (ROE) | 9.26% | 5.33% | 5.61% | 5.44% | 5.31% | 8.40% | 9.46% | 11.39% | 12.67% | 17.40% | 19.14% | 19.58% | 23.14% | 26.06% | 27.89% | 26.17% | 16.49% | 10.25% | -2.39% | -3.09% |
Laboratory Corporation of America Holdings has shown varying profitability ratios over the past few years.
1. Operating Return on Assets (Operating ROA): This ratio measures the operating income generated per dollar of assets. The trend shows an increase from 4.74% in March 2020 to 20.09% in June 2021, but then a declining trend to 4.02% by September 2024. The company experienced a peak in profitability in mid-2021 but has since seen a decrease.
2. Return on Assets (ROA): This ratio indicates the net income generated per dollar of assets. The trend displays an upward trajectory from -1.25% in March 2020 to 14.10% in June 2021, followed by a decrease to 4.06% in December 2024. Despite fluctuations, the company has shown positive returns on assets since September 2020.
3. Return on Total Capital: This ratio showcases the return on total capital employed. The trend follows a similar pattern as ROA, with an increase from 2.21% in March 2020 to 25.96% in June 2021, but a subsequent decline to 6.07% by September 2024. The company demonstrated strong returns on capital in the early periods but faced a reduction in recent quarters.
4. Return on Equity (ROE): This ratio measures the return generated for shareholders' equity. The trend shows improvement from negative figures in early 2020 to a peak of 27.89% in June 2021, followed by a decrease to 5.33% in September 2024. Laboratory Corporation of America Holdings has exhibited fluctuating returns for its equity holders, with periods of significant growth followed by periods of decline.
Overall, the profitability ratios of the company indicate a mix of positive and negative trends over the observation period, reflecting varying performance levels and financial health.