Laboratory Corporation of America Holdings (LH)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,054,700 | 5,038,800 | 5,416,500 | 5,419,000 | 5,789,800 |
| Total assets | US$ in thousands | 16,725,100 | 20,155,100 | 20,385,400 | 20,071,700 | 18,046,400 |
| Debt-to-assets ratio | 0.24 | 0.25 | 0.27 | 0.27 | 0.32 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,054,700K ÷ $16,725,100K
= 0.24
The debt-to-assets ratio of Laboratory Corp. Of America Holdings has shown a decreasing trend over the past five years, indicating improved financial stability in terms of debt management and asset utilization. The ratio decreased from 0.35 in 2019 to 0.31 in 2023, with the lowest values observed in 2022 and 2021 at 0.27. This suggests that the company has been able to reduce its reliance on debt financing relative to total assets, which could potentially lower financial risk and enhance solvency. However, it is important to consider the optimal level of debt for the company's operations and growth prospects to ensure a balanced capital structure.
Peer comparison
Dec 31, 2023