Laboratory Corporation of America Holdings (LH)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,379,000 | 18,612,500 | 16,712,300 | 16,531,000 | 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 |
| 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 |
| Financial leverage ratio | 2.28 | 2.28 | 2.09 | 2.08 | 2.12 | 2.14 | 2.02 | 2.30 | 2.00 | 1.96 | 1.96 | 1.93 | 1.98 | 1.97 | 1.98 | 2.02 | 2.13 | 2.27 | 2.43 | 2.46 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,379,000K ÷ $8,052,200K
= 2.28
The financial leverage ratio of Laboratory Corporation of America Holdings has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The ratio decreased from 2.46 on March 31, 2020, to 1.98 on June 30, 2021, before experiencing some fluctuations. However, by December 31, 2024, the ratio increased to 2.28.
A financial leverage ratio of 2.28 as of December 31, 2024, indicates that the company has $2.28 in debt for every dollar of equity. This suggests that the company relies more on debt to finance its operations compared to equity.
Overall, fluctuations in the financial leverage ratio of Laboratory Corporation of America Holdings may indicate changes in its capital structure and the level of financial risk the company is taking. It is important for investors and stakeholders to monitor these changes to assess the company's ability to meet its financial obligations and manage its debt effectively.
Peer comparison
Dec 31, 2024