Laboratory Corporation of America Holdings (LH)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 418,000 | 1,279,100 | 2,377,300 | 1,556,100 | 823,800 |
| Total stockholders’ equity | US$ in thousands | 7,875,000 | 10,096,600 | 10,273,400 | 9,436,600 | 7,643,900 |
| ROE | 5.31% | 12.67% | 23.14% | 16.49% | 10.78% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $418,000K ÷ $7,875,000K
= 5.31%
The return on equity (ROE) for Laboratory Corp. Of America Holdings has fluctuated over the past five years. In 2023, the ROE decreased to 5.31% from 12.67% in 2022. This decline indicates that the company's ability to generate profit from shareholders' equity weakened in 2023. The ROE was significantly higher at 23.14% in 2021, showing a robust performance that year. In 2020, the ROE was 16.63%, demonstrating a solid profitability level, although lower than in 2021. In 2019, the ROE stood at 10.89%, indicating reasonable profitability but lower than the subsequent years.
Overall, the varying trend in ROE suggests that Laboratory Corp. Of America Holdings has experienced fluctuations in its ability to generate profit from shareholders' equity. It is essential for stakeholders to further analyze the company's financial performance and identify factors influencing these changes in ROE to make informed investment decisions.
Peer comparison
Dec 31, 2023