Laboratory Corporation of America Holdings (LH)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 18,046,400 | 17,847,800 | 17,744,400 | 16,970,800 |
| Total stockholders’ equity | US$ in thousands | 7,875,000 | 7,873,100 | 8,785,000 | 10,341,500 | 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 | 7,643,900 | 7,020,100 | 7,144,400 | 7,111,300 |
| Financial leverage ratio | 2.12 | 2.14 | 2.02 | 1.95 | 2.00 | 1.96 | 1.96 | 1.93 | 1.98 | 1.97 | 1.98 | 2.02 | 2.13 | 2.27 | 2.43 | 2.46 | 2.36 | 2.54 | 2.48 | 2.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,725,100K ÷ $7,875,000K
= 2.12
The financial leverage ratio for Laboratory Corp. Of America Holdings has shown some fluctuations over the past quarters. The ratio increased from 2.00 in Q4 2022 to 2.12 in Q4 2023, indicating a higher level of financial leverage. This trend continued in Q3 2023 with a ratio of 2.14, which was the highest in the provided data.
In the following quarters, the ratio decreased to 2.02 in Q2 2023 and 1.95 in Q1 2023, suggesting a reduction in the company's financial leverage. The ratio remained relatively stable around 1.96 in the previous quarters of 2022.
Overall, the financial leverage ratio of Laboratory Corp. Of America Holdings has experienced some variability but has generally remained above 2, indicating a higher level of debt relative to equity in the company's capital structure. This may imply that the company relies more on debt to finance its operations and growth, which could potentially lead to increased financial risk.
Peer comparison
Dec 31, 2023