Laboratory Corporation of America Holdings (LH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 8,052,200 | 8,170,200 | 8,005,800 | 7,959,600 | 7,875,000 | 7,873,100 | 8,785,000 | 8,785,000 | 10,096,600 | 10,092,200 | 10,400,700 | 10,721,100 | 10,273,400 | 10,601,400 | 10,322,000 | 10,098,400 | 9,436,600 | 8,239,100 | 7,352,700 | 7,020,100 |
| Debt-to-capital ratio | 0.40 | 0.40 | 0.28 | 0.28 | 0.34 | 0.36 | 0.36 | 0.37 | 0.33 | 0.35 | 0.34 | 0.33 | 0.35 | 0.34 | 0.34 | 0.33 | 0.36 | 0.40 | 0.42 | 0.45 |
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 declining trend over the past few years. Starting at 0.45 in March 2020, the ratio decreased to 0.28 by June 2024, indicating that the company has been reducing its reliance on debt to finance its operations and investments. This downward trend suggests that the company has improved its capital structure and may be managing its debt more prudently. A lower debt-to-capital ratio generally signifies lower financial risk and increased financial stability. Furthermore, a decreasing trend in this ratio may reflect positively on the company's creditworthiness and ability to meet financial obligations in the long term.
Peer comparison
Dec 31, 2024