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Laboratory of America Holdings ROA %

: 9.16% (As of Jun. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Laboratory of America Holdings's annualized Net Income for the quarter that ended in Jun. 2021 was $1,870 Mil. Laboratory of America Holdings's average Total Assets over the quarter that ended in Jun. 2021 was $20,417 Mil. Therefore, Laboratory of America Holdings's annualized ROA % for the quarter that ended in Jun. 2021 was 9.16%.

The historical rank and industry rank for Laboratory of America Holdings's ROA % or its related term are showing as below:

NYSE:LH' s ROA % Range Over the Past 10 Years
Min: 4.09   Med: 7.56   Max: 14.76
Current: 14.76

4.09
14.76

During the past 13 years, Laboratory of America Holdings's highest ROA % was 14.76%. The lowest was 4.09%. And the median was 7.56%.

NYSE:LH's ROA % is ranked higher than
85% of the 112 Companies
in the Medical Diagnostics & Research industry.

( Industry Median: -7.89 vs. NYSE:LH: 14.76 )

Laboratory of America Holdings ROA % Historical Data

The historical data trend for Laboratory of America Holdings's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Laboratory of America Holdings Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.02 7.94 5.38 4.81 8.16

Laboratory of America Holdings Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.27 15.38 19.34 15.21 9.16

Competitive Comparison

For the Diagnostics & Research subindustry, Laboratory of America Holdings's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Laboratory of America Holdings ROA % Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Laboratory of America Holdings's ROA % distribution charts can be found below:

* The bar in red indicates where Laboratory of America Holdings's ROA % falls into.



Laboratory of America Holdings ROA % Calculation

Laboratory of America Holdings's annualized ROA % for the fiscal year that ended in Dec. 2020 is calculated as:

ROA %=Net Income (A: Dec. 2020 )/( (Total Assets (A: Dec. 2019 )+Total Assets (A: Dec. 2020 ))/ count )
=1556.1/( (18046.4+20071.7)/ 2 )
=1556.1/19059.05
=8.16 %

Laboratory of America Holdings's annualized ROA % for the quarter that ended in Jun. 2021 is calculated as:

ROA %=Net Income (Q: Jun. 2021 )/( (Total Assets (Q: Mar. 2021 )+Total Assets (Q: Jun. 2021 ))/ count )
=1869.6/( (20417.1+20417.1)/ 2 )
=1869.6/20417.1
=9.16 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2021) net income data. ROA % is displayed in the 30-year financial page.


Laboratory of America Holdings  (NYSE:LH) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2021 )
=Net Income/Total Assets
=1869.6/20417.1
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1869.6 / 15362.8)*(15362.8 / 20417.1)
=Net Margin %*Asset Turnover
=12.17 %*0.7524
=9.16 %

Note: The Net Income data used here is four times the quarterly (Jun. 2021) net income data. The Revenue data used here is four times the quarterly (Jun. 2021) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Laboratory of America Holdings ROA % Related Terms

Thank you for viewing the detailed overview of Laboratory of America Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Laboratory of America Holdings Business Description

Laboratory of America Holdings logo
Industry
Traded in Other Exchanges
Address
358 South Main Street, Burlington, NC, USA, 27215
Laboratory Corporation of America is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from routine blood and urine screens to complex oncology and genomic testing. With the addition of Covance, LabCorp also has a sizable footprint in the global contract research organization market.
Executives
Caveney Brian J officer: EVP, President of Diagnostics 531 SOUTH SPRING STREET BURLINGTON NC 27215
Wilkinson Peter J officer: SVP, Chief Accounting Officer C/O PHARMACEUTICAL PRODUCT DEVELOPMENT 929 NORTH FRONT STREET WILMINGTON NC 28401
Williams R Sanders director DUKE UNIVERSITY SCHOOL OF MEDICINE TRENT DRIVE DURHAM NC 27706
Van Der Vaart Sandra D officer: EVP, Chief Legal Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
King David P director 531 SOUTH SPRING STREET BURLINGTON NC 27215
Kirchgraber Paul R officer: CEO, Covance Drug Development 531 SOUTH SPRING STREET BURLINGTON NC 27215
Schroeder Mark S officer: EVP, President-Diagnostics Lab 531 SOUTH SPRING STREET BURLINGTON NC 27215
Eisenberg Glenn A officer: Chief Financial Officer, EVP P O BOX 1017 CHARLOTTE NC 28201-1017
Berberian Lance officer: EVP, CIO & CTO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BERBERIAN LANCE a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Summy Amy B. officer: EVP, Chief Marketing Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
Seltz Judith C officer: EVP, CHRO 531 SOUTH SPRING STREET BURLINGTON NC 27215
Belingard Jean-luc director 1401 HARBOR BAY PARKWAY ALAMEDA CA 94502
Gilliland Dwight Gary director 531 SOUTH SPRING STREET BURLINGTON NC 27215
Kong Garheng director 712 COLLEGE AVENUE MENLO PARK CA 94025
Neupert Peter M director 13920 SE EASTGATE WAY STE 300 BELLEVUE WA 98005

Laboratory of America Holdings Headlines

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