Laboratory Corporation of America Holdings (LH)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,331,200 | 4,054,700 | 5,038,800 | 5,416,500 | 5,419,000 |
| Total assets | US$ in thousands | 18,379,000 | 16,725,100 | 20,155,100 | 20,385,400 | 20,071,700 |
| Debt-to-assets ratio | 0.29 | 0.24 | 0.25 | 0.27 | 0.27 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,331,200K ÷ $18,379,000K
= 0.29
The debt-to-assets ratio of Laboratory Corporation of America Holdings has remained relatively stable over the past five years. The ratio was 0.27 at the end of 2020 and 2021, showing that the company's total debt represented 27% of its total assets during those years.
In the subsequent years, the ratio decreased to 0.25 at the end of 2022 and further to 0.24 at the end of 2023, indicating a decreasing trend in the proportion of debt to total assets. However, there was a slight increase to 0.29 at the end of 2024, suggesting that the company may have taken on more debt relative to its total assets during that period.
Overall, a debt-to-assets ratio below 1 indicates that Laboratory Corporation of America Holdings has more assets than debt, which is generally considered favorable as it implies lower financial risk. The decreasing trend in the ratio from 2020 to 2023 could suggest improved financial stability and efficiency in managing debt, although the slight increase in 2024 might warrant further monitoring to understand the company's evolving capital structure.
Peer comparison
Dec 31, 2024