Labcorp Holdings Inc. — Earnings Quality Grade F
LH · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 55 days, change +0 days YoY
AR growth 8.2% vs revenue growth 7.2%
Revenue 7.2%, CFFO 3.4%. Cash follows revenue
Expense Quality
Inventory 8.4% vs COGS 5.9%. Normal
CapEx growth -11.3% vs revenue 7.2%. Normal
SG&A/Gross Profit = 55.2%. Normal
Gross margin 28.8%, change +0.9pp. Stable
Cash Flow Quality
CFFO/NI = 1.87. Profits backed by cash
FCF $1.2B, FCF/NI = 1.38
Accruals ratio = -4.2%. Low accruals
Cash $0.5B covers only 8% of debt $6.5B
Balance Sheet Health
Goodwill+Intangibles $10.4B = 120% of equity. Over 50%
Debt/EBITDA = 3.2x. Healthy
Other assets 15.2% vs revenue 7.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 5% YoY. Normal
Manipulation Score
M-Score = -2.55 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09