Laboratory Corporation of America Holdings (LH)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 746,000 | 418,000 | 1,279,100 | 2,377,300 | 1,556,100 |
| Total stockholders’ equity | US$ in thousands | 8,052,200 | 7,875,000 | 10,096,600 | 10,273,400 | 9,436,600 |
| ROE | 9.26% | 5.31% | 12.67% | 23.14% | 16.49% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $746,000K ÷ $8,052,200K
= 9.26%
The return on equity (ROE) of Laboratory Corporation of America Holdings has shown fluctuations over the past five years.
In December 31, 2020, the ROE was at 16.49%, indicating that for every dollar of shareholders' equity, the company generated a profit of 16.49 cents.
By December 31, 2021, the ROE increased to 23.14%, reflecting improved profitability and efficiency in utilizing shareholders' equity.
However, in December 31, 2022, the ROE dropped to 12.67%, suggesting a decrease in profitability compared to the previous year.
The trend continued in December 31, 2023, with the ROE further declining to 5.31%, indicating a significant decrease in the company's ability to generate profit from shareholders' equity.
In December 31, 2024, the ROE slightly improved to 9.26%, but it still remained below the levels seen in 2021 and 2022.
Overall, the fluctuating ROE of Laboratory Corporation of America Holdings over the years indicates variability in the company's profitability and efficiency in utilizing shareholders' equity to generate returns for its investors. Further analysis of the underlying factors driving these fluctuations would be necessary to understand the company's financial performance in more detail.
Peer comparison
Dec 31, 2024