Laboratory Corporation of America Holdings (LH)
Debt-to-assets ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,331,200 | 5,352,100 | 3,047,300 | 3,047,600 | 4,054,700 | 4,427,600 | 5,042,400 | 5,052,300 | 5,038,800 | 5,334,300 | 5,360,300 | 5,383,300 | 5,416,500 | 5,417,200 | 5,422,600 | 4,920,900 | 5,419,000 | 5,417,300 | 5,416,600 | 5,790,200 |
| Total assets | US$ in thousands | 18,379,000 | 18,612,500 | 16,712,300 | 16,531,000 | 16,725,100 | 16,886,000 | 17,718,700 | 20,200,000 | 20,155,100 | 19,826,000 | 20,403,100 | 20,728,400 | 20,385,400 | 20,866,500 | 20,417,100 | 20,417,100 | 20,071,700 | 18,739,600 | 17,849,100 | 17,298,400 |
| Debt-to-assets ratio | 0.29 | 0.29 | 0.18 | 0.18 | 0.24 | 0.26 | 0.28 | 0.25 | 0.25 | 0.27 | 0.26 | 0.26 | 0.27 | 0.26 | 0.27 | 0.24 | 0.27 | 0.29 | 0.30 | 0.33 |
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 exhibited a declining trend over the past few years, decreasing from 0.33 on March 31, 2020, to 0.29 on December 31, 2024. This ratio measures the proportion of the company's assets that are financed through debt, indicating the level of financial leverage.
The decreasing trend in the debt-to-assets ratio suggests that the company has been reducing its reliance on debt to fund its operations and investments while increasing its asset base. A lower debt-to-assets ratio is generally viewed positively as it signifies a lower risk of financial distress and indicates that the company may have a stronger financial position.
However, it is worth noting that the ratio saw a slight increase towards the end of the period, rising from 0.24 on March 31, 2024, to 0.29 on December 31, 2024. This uptick could indicate a recent increase in debt relative to assets, which may warrant further investigation to understand the reasons behind this shift in leverage.
Overall, the declining trend in Laboratory Corporation of America Holdings' debt-to-assets ratio reflects a conservative approach to capital structure management, which may contribute to the company's financial stability and resilience.
Peer comparison
Dec 31, 2024