Laboratory Corporation of America Holdings (LH)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 746,000 | 435,500 | 449,500 | 433,100 | 418,000 | 661,200 | 830,700 | 1,000,400 | 1,279,100 | 1,756,000 | 1,990,500 | 2,099,300 | 2,377,300 | 2,762,600 | 2,878,700 | 2,642,900 | 1,556,100 | 844,900 | -175,700 | -216,900 |
| Total assets | US$ in thousands | 18,379,000 | 18,612,500 | 16,712,300 | 16,531,000 | 16,725,100 | 16,886,000 | 17,718,700 | 20,200,000 | 20,155,100 | 19,826,000 | 20,403,100 | 20,728,400 | 20,385,400 | 20,866,500 | 20,417,100 | 20,417,100 | 20,071,700 | 18,739,600 | 17,849,100 | 17,298,400 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $746,000K ÷ $18,379,000K
= 4.06%
Laboratory Corporation of America Holdings has experienced fluctuations in its return on assets (ROA) over the past few years.
The ROA was negative in the first half of 2020, indicating that the company's assets were not generating sufficient profits during that period. However, there was a significant turnaround in the second half of 2020, with ROA increasing to 7.75% by the end of December 2020.
Throughout 2021, ROA showed a consistent upward trend, reaching a peak of 14.10% by the end of June 2021. This suggests that the company was effectively utilizing its assets to generate profits during this period.
From September 2021 to December 2024, the ROA gradually declined, indicating a decrease in the company's ability to generate profits from its assets. Despite some fluctuations, the ROA remained within a range of 2.34% to 13.24%.
Overall, the analysis of Laboratory Corporation of America Holdings' ROA reveals varying performance levels in harnessing its assets to generate profits over the years, with some periods of improvement followed by slight downturns. It would be important for stakeholders to further investigate the factors contributing to these fluctuations to ensure the company's long-term financial sustainability.
Peer comparison
Dec 31, 2024