Laboratory Corp Bonds

LH -  USA Stock  

USD 283.77  2.67  0.95%

Laboratory Corp's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Laboratory Corp's financial risk is the risk to Laboratory Corp stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Additionally, see the analysis of Laboratory Corp Fundamentals Over Time.

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Laboratory Corp Long Term Debt to Equity is most likely to slightly decrease in the upcoming years. The last year's value of Long Term Debt to Equity was reported at 0.59. The current Debt to Equity Ratio is estimated to increase to 1.23, while Total Debt is projected to decrease to roughly 6.3 B.

Laboratory Current Financial Burden

Laboratory Corp's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Laboratory Corp's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Laboratory Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Laboratory Corp's stakeholders.

Asset vs Debt

Equity vs Debt

Given that Laboratory Corp's debt-to-equity ratio measures a company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Laboratory Corp is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Laboratory Corp to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Laboratory Corp is said to be less leveraged. If creditors hold a majority of Laboratory Corp's assets, the company is said to be highly leveraged.

Laboratory Corp Quarterly Debt to Equity Ratio

1.035Share
Given the importance of Laboratory Corp's capital structure, the first step in the capital decision process is for the management of Laboratory Corp to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Laboratory Corp to issue bonds at a reasonable cost.

Laboratory Corp Bond Ratings

Laboratory Corp bond ratings play a critical role in determining how much Laboratory Corp have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Laboratory Corp's borrowing costs.
Overall Bond Rating
Adequate
Average S&P Rating
BBB
Piotroski F Score
5  Healthy
Beneish M Score

Laboratory Corp Debt to Cash Allocation

As Laboratory Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Laboratory Corp's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company reports 6.36 B of total liabilities with total debt to equity ratio (D/E) of 0.63, which is normal for its line of buisiness. Laboratory Corp has a current ratio of 1.64, which is generally considered normal.

Laboratory Corp Inventories Over Time

Laboratory Corp Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Laboratory Corp uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

Laboratory Corp Debt Ratio

    
  35.86   
It seems as roughly 64% of Laboratory Corp's assets are financed through equity. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Laboratory Corp's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Laboratory Corp, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Laboratory Corp debt ratio should be compared their industry average or other competing firms.
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Laboratory Corp Corporate Bonds Issued

Laboratory Corp issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Laboratory Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Laboratory bonds can be classified according to their maturity, which is the date when Laboratory Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Issue DateMaturityCouponRef Coupon  Rating
Laboratory 08232022 37508/23/201208/23/20223.752.0
BBB+
Laboratory 11012023 4011/01/201311/01/20234.02.25
BBB+
Laboratory 02012022 3201/30/201502/01/20223.22.0
BBB
LABORATORY CORP AMER01/30/201502/01/20253.62.0
BBB
LABORATORY CORP AMER01/30/201502/01/20454.72.5
BBB

Laboratory Corp Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Laboratory Corp, understanding its historical liability is critical in projecting Laboratory Corp's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Laboratory Corp uses its financing power over time.

Understaning Laboratory Corp Use of Financial Leverage

Laboratory Corp financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Laboratory Corp's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Laboratory Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Laboratory Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Total Debt6.8 B6.3 B
Debt Current575.4 M516 M
Debt Non Current6.2 B5.8 B
Issuance Repayment of Debt Securities-412.2 M-423 M
Long Term Debt to Equity 0.59  0.83 
Debt to Equity Ratio 1.14  1.23 
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. The company was founded in 1971 and is headquartered in Burlington, North Carolina. Laboratory Corp operates under Diagnostics Research classification in the United States and is traded on New York Stock Exchange. It employs 70000 people.

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Additionally, see the analysis of Laboratory Corp Fundamentals Over Time. Note that the Laboratory Corp information on this page should be used as a complementary analysis to other Laboratory Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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When running Laboratory Corp price analysis, check to measure Laboratory Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Laboratory Corp is operating at the current time. Most of Laboratory Corp's value examination focuses on studying past and present price action to predict the probability of Laboratory Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Laboratory Corp's price. Additionally, you may evaluate how the addition of Laboratory Corp to your portfolios can decrease your overall portfolio volatility.
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The market value of Laboratory Corp is measured differently than its book value, which is the value of Laboratory that is recorded on the company's balance sheet. Investors also form their own opinion of Laboratory Corp's value that differs from its market value or its book value, called intrinsic value, which is Laboratory Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Laboratory Corp's market value can be influenced by many factors that don't directly affect Laboratory Corp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Laboratory Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Laboratory Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Laboratory Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.