Laboratory Corporation of America Holdings (LH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.05% | 26.20% | 26.74% | 27.58% | 29.02% | 32.28% | 33.04% | 33.16% | 34.89% | 37.18% | 38.61% | 38.02% | 35.43% | 31.09% | 27.25% | 27.54% | 28.15% | 28.13% | 28.13% | 28.26% |
| Operating profit margin | 5.71% | 7.75% | 8.62% | 9.73% | 11.88% | 16.16% | 17.50% | 18.22% | 20.22% | 23.09% | 25.03% | 24.13% | 17.49% | 11.96% | 6.81% | 7.07% | 11.51% | 11.43% | 11.56% | 11.87% |
| 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% |
| Net profit margin | 3.24% | 4.18% | 5.32% | 6.45% | 8.18% | 12.78% | 13.32% | 13.24% | 14.75% | 16.69% | 17.57% | 17.26% | 11.13% | 6.79% | -1.53% | -1.87% | 2.47% | 1.90% | 7.55% | 7.95% |
Laboratory Corp. Of America Holdings has shown a decreasing trend in gross profit margin over the past quarters, with Q4 2023 standing at 27.67% compared to 29.48% in Q4 2022. This implies a decline in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin has also been decreasing consistently, dropping from 18.46% in Q1 2022 to 9.24% in Q4 2023. This suggests that the company is facing challenges in controlling its operating expenses and improving operational efficiency.
The pretax margin has followed a downward trajectory as well, indicating a decline in the company's profitability before accounting for taxes. The net profit margin has also exhibited a decreasing trend, falling from 13.24% in Q1 2022 to 3.44% in Q4 2023. This indicates a decrease in the proportion of revenue that translates into net income for shareholders.
Overall, the profitability ratios of Laboratory Corp. Of America Holdings have shown a decline over the analyzed quarters, highlighting potential challenges in maintaining profitability levels and efficiently managing costs. A closer examination of the underlying factors influencing these ratios would be necessary to devise strategies for improving the company's financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 1.58% | 1.21% | 4.81% | 5.28% |
| Return on total capital | 6.76% | 8.72% | 8.83% | 9.26% | 11.75% | 15.17% | 17.21% | 18.31% | 21.27% | 24.34% | 25.96% | 24.69% | 16.33% | 10.93% | 2.38% | 2.21% | 6.01% | 8.00% | 13.55% | 14.64% |
| Return on equity (ROE) | 5.31% | 8.40% | 9.46% | 9.67% | 12.67% | 17.40% | 19.14% | 19.58% | 23.14% | 26.06% | 27.89% | 26.17% | 16.49% | 10.25% | -2.39% | -3.09% | 3.74% | 3.09% | 11.94% | 12.60% |
Laboratory Corp. Of America Holdings' profitability ratios have shown a declining trend over the past few quarters.
Operating return on assets (Operating ROA) decreased from 14.12% in Q1 2022 to 6.72% in Q4 2023, indicating a reduction in the company's ability to generate profits from its assets through its core operational activities.
Return on assets (ROA) exhibited a similar trend, decreasing from 10.13% in Q1 2022 to 2.50% in Q4 2023. This ratio suggests that the company's overall profitability in relation to its total assets has declined significantly over the analyzed period.
Return on total capital also experienced a decrease, falling from 18.23% in Q1 2022 to 8.62% in Q4 2023. This ratio indicates the company's ability to generate returns in relation to both debt and equity investments, showing a decreasing trend.
Return on equity (ROE) decreased from 19.58% in Q1 2022 to 5.31% in Q4 2023. This ratio reflects the company's ability to generate profits for its shareholders from the equity invested in the business, demonstrating a substantial decline in profitability.
Overall, the declining trend in Laboratory Corp. Of America Holdings' profitability ratios suggests challenges in effectively leveraging its assets and generating satisfactory returns for investors over the analyzed periods.