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Laboratory of America Holdings Altman Z-Score

: 3.90 (As of Today)
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Good Sign:

Altman Z-score of 3.9 is strong.

Laboratory of America Holdings has a Altman Z-Score of 3.90, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Laboratory of America Holdings's Altman Z-Score or its related term are showing as below:

NYSE:LH' s Altman Z-Score Range Over the Past 10 Years
Min: 0.08   Med: 3.62   Max: 25
Current: 3.9

0.08
25

During the past 13 years, Laboratory of America Holdings's highest Altman Z-Score was 25.00. The lowest was 0.08. And the median was 3.62.


Laboratory of America Holdings Altman Z-Score Historical Data

The historical data trend for Laboratory of America Holdings's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.42 2.43 2.51 2.46 2.99

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
Altman Z-Score 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 2.36 2.68 2.99 3.62 3.93

Competitive Comparison

For the Diagnostics & Research subindustry, Laboratory of America Holdings's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

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

* The bar in red indicates where Laboratory of America Holdings's Altman Z-Score falls into.



Laboratory of America Holdings Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Laboratory of America Holdings's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1482+1.4*0.5102+3.3*0.2003+0.6*2.574+1.0*0.8027
=3.90

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $20,417 Mil.
Total Current Assets was $5,694 Mil.
Total Current Liabilities was $2,667 Mil.
Retained Earnings was $10,417 Mil.
Pre-Tax Income was 650.6 + 1021.8 + 1242.7 + 947.1 = $3,862 Mil.
Interest Expense was -78.3 + -48.5 + -48.3 + -51.4 = $-227 Mil.
Revenue was 3840.7 + 4161.5 + 4489.8 + 3896.1 = $16,388 Mil.
Market Cap (Today) was $26,182 Mil.
Total Liabilities was $10,172 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(5693.5 - 2667.1)/20417.1
=0.1482

X2=Retained Earnings/Total Assets
=10417.4/20417.1
=0.5102

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(3862.2 - -226.5)/20417.1
=0.2003

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=26182.240/10172
=2.574

X5=Revenue/Total Assets
=16388.1/20417.1
=0.8027

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Laboratory of America Holdings has a Altman Z-Score of 3.90 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Laboratory of America Holdings  (NYSE:LH) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Laboratory of America Holdings Altman Z-Score Related Terms

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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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