Laboratory Corporation of America Holdings (LH)

Based on the provided data, Laboratory Corporation of America Holdings has shown consistency in its Debt-to-assets ratio, with a slight reduction from 0.27 in 2020 to 0.24 in 2023 before rising to 0.29 in 2024. This indicates that the company's total debt as a percentage of its total assets has been relatively stable over the years.

In terms of Debt-to-capital ratio, the trend shows a decrease from 0.36 in 2020 to 0.33 in 2022 before slightly increasing to 0.40 in 2024. This indicates that the proportion of debt in the company's capital structure has decreased initially and then increased in the most recent year.

The Debt-to-equity ratio has shown a declining trend from 0.57 in 2020 to 0.50 in 2022, before increasing to 0.66 in 2024. This suggests that the reliance on debt financing in comparison to equity has reduced initially but increased significantly in the most recent year.

The Financial leverage ratio, which reflects the company's ability to meet its financial obligations, shows some fluctuations, ranging from 1.98 in 2021 to 2.28 in 2024. This indicates a varying level of financial leverage over the years, with a notable increase in 2024.

In conclusion, while Laboratory Corporation of America Holdings has maintained a relatively stable debt-to-assets ratio, the trends in debt-to-capital, debt-to-equity, and financial leverage ratios show some fluctuations, indicating changes in the company's capital structure and financial leverage position over the years.

---

Coverage ratios

Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt.

For Laboratory Corporation of America Holdings, the interest coverage ratio has displayed fluctuations over the years. At the end of December 31, 2020, the interest coverage ratio stood at 11.70, indicating that the company's operating income was more than sufficient to cover its interest expenses.

The ratio improved by the end of December 31, 2021, reaching 15.73, which suggests the company's ability to meet its interest obligations improved significantly, possibly due to increased operating income or lower interest expenses.

However, a slight decline was observed by the end of December 31, 2022, with the interest coverage ratio dropping to 9.80. This decrease may indicate either a rise in interest expenses or a decline in operating income, potentially signaling a slightly increased risk in meeting interest payments.

By the end of December 31, 2023, the interest coverage ratio further decreased to 4.04, falling below the ideal value of 1. This could indicate a significant decrease in the company's ability to cover its interest expenses with its operating income, raising concerns about its financial health.

Nevertheless, there was a slight improvement by the end of December 31, 2024, with the interest coverage ratio increasing to 5.60. Although still below the ideal level of 1, this improvement suggests some recovery in the company's capacity to meet its interest obligations.

Overall, fluctuations in the interest coverage ratio for Laboratory Corporation of America Holdings over the years reflect varying levels of financial health and ability to cover interest expenses, highlighting the importance of monitoring this ratio for assessing the company's financial stability.