Laboratory Corporation of America Holdings (LH)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 7,875,000 | 10,096,600 | 10,273,400 | 9,436,600 | 7,643,900 |
| Debt-to-equity ratio | 0.51 | 0.50 | 0.53 | 0.57 | 0.76 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,054,700K ÷ $7,875,000K
= 0.51
The debt-to-equity ratio for Laboratory Corp. Of America Holdings has fluctuated over the past five years. In 2019, the ratio was relatively high at 0.83, indicating a higher level of debt relative to equity. However, there has been a decreasing trend in the ratio since then, reaching 0.65 at the end of 2023.
The decreasing trend in the debt-to-equity ratio suggests that the company has been reducing its reliance on debt financing in favor of equity financing. A lower ratio can indicate a healthier financial position, as it implies a lower level of financial risk and leverage.
Overall, the decreasing trend in the debt-to-equity ratio for Laboratory Corp. Of America Holdings is a positive sign, indicating improved financial stability and a stronger balance sheet structure.
Peer comparison
Dec 31, 2023