Laboratory Corporation of America Holdings (LH)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 285,900 | 216,700 | 852,700 | 896,100 |
| Total assets | US$ in thousands | 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 | 18,046,400 | 17,847,800 | 17,744,400 | 16,970,800 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $418,000K ÷ $16,725,100K
= 2.50%
The return on assets (ROA) for Laboratory Corp. Of America Holdings has shown a declining trend over the past eight quarters. In Q4 2022, the ROA was 6.35%, which steadily decreased to 2.50% in Q4 2023. This declining trend indicates that the company's ability to generate profit from its assets has been decreasing over time.
The ROA peaked at 10.13% in Q1 2022, before experiencing a consistent decrease quarter over quarter. This may be a cause for concern, as a declining ROA could signal inefficiencies in asset utilization or a decrease in profitability relative to the company's asset base.
Investors and stakeholders should closely monitor the company's ROA in future quarters to assess whether the trend continues or if there are any improvements in the company's ability to generate profits from its assets. Additional analysis, such as comparing the ROA to industry peers or benchmarking against historical data, can provide further insights into the company's financial performance and efficiency.
Peer comparison
Dec 31, 2023