Laboratory Corporation of America Holdings (LH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 8,052,200 | 7,875,000 | 10,096,600 | 10,273,400 | 9,436,600 |
| Debt-to-capital ratio | 0.40 | 0.34 | 0.33 | 0.35 | 0.36 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,331,200K ÷ ($5,331,200K + $8,052,200K)
= 0.40
The debt-to-capital ratio of Laboratory Corporation of America Holdings has shown a slight fluctuation over the past five years. Starting at 0.36 in December 31, 2020, it decreased to 0.35 by December 31, 2021, further declining to 0.33 by December 31, 2022. However, there was a slight increase to 0.34 by December 31, 2023, followed by a notable rise to 0.40 by December 31, 2024.
Despite the fluctuations, the general trend indicates that the company's reliance on debt as a source of capital has varied over the years. A decreasing debt-to-capital ratio may suggest a more conservative capital structure, indicating lower financial risk. Conversely, an increasing ratio may imply higher leverage, potentially leading to increased financial risk. It would be important for stakeholders to further examine the reasons behind these changes and consider the potential impact on the company's financial health and strategic decisions.
Peer comparison
Dec 31, 2024