Laboratory Corporation of America Holdings (LH)
Debt-to-equity 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-equity ratio | 0.66 | 0.51 | 0.50 | 0.53 | 0.57 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,331,200K ÷ $8,052,200K
= 0.66
The debt-to-equity ratio for Laboratory Corporation of America Holdings has shown a declining trend from 0.57 at the end of December 31, 2020, to 0.53 at the end of December 31, 2021, further decreasing to 0.50 at the end of December 31, 2022. This declining trend indicates that the company has been reducing its reliance on debt financing in relation to equity over the years. However, there was a slight increase in the ratio to 0.51 at the end of December 31, 2023, followed by a more significant increase to 0.66 at the end of December 31, 2024.
The increase in the debt-to-equity ratio in the last two years may suggest that the company has taken on more debt compared to its equity, which could potentially indicate increased financial risk. It is important for investors and stakeholders to monitor this ratio closely to understand the company's capital structure and its ability to repay debts in the long term.
Overall, the fluctuation in Laboratory Corporation of America Holdings' debt-to-equity ratio highlights the importance of assessing both the absolute values and the trend over time to gain a more comprehensive understanding of the company's leverage and financial health.
Peer comparison
Dec 31, 2024