Laboratory Corporation of America Holdings (LH)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,875,000 | 7,873,100 | 8,785,000 | 10,341,500 | 10,096,600 | 10,092,200 | 10,400,700 | 10,721,100 | 10,273,400 | 10,601,400 | 10,322,000 | 10,098,400 | 9,436,600 | 8,239,100 | 7,352,700 | 7,020,100 | 7,643,900 | 7,020,100 | 7,144,400 | 7,111,300 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $418,000K ÷ $7,875,000K
= 5.31%
The return on equity (ROE) of Laboratory Corp. Of America Holdings has exhibited a declining trend over the last eight quarters. The ROE figures have decreased from 19.58% in Q1 2022 to 5.31% in Q4 2023. This indicates a significant decrease in the company's ability to generate profits from its shareholders' equity during this period.
The decreasing trend in ROE suggests that the company's profitability relative to its equity has been weakening over time. This could be a cause for concern as lower ROE may indicate inefficiencies in the utilization of equity capital or declining profitability of the company.
It is important for investors and stakeholders to closely monitor this trend to understand the underlying factors impacting the company's return on equity and assess whether management strategies are effective in improving and optimizing the company's financial performance.
Peer comparison
Dec 31, 2023