Part
01
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Part
01
Clinical Lab Financial Data
The requested financial data for LabCorp, Quest, OPKO Health and Enzo Biochem has been provided in the attached spreadsheet.
Selected Findings
- LabCorp clinical laboratories services segment revenue was $9.25 billion in 2020. Its operating income was 28.5% of the segment's revenue.
- Quest revenue was $9.44 billion in 2020. Its operating income was 15.01% of the segment's revenue.
- OPKO Health clinical laboratories services segment revenue was $1.26 billion in 2020. Its operating income was 11.01% of the segment's revenue.
- Enzo Biochem clinical laboratories services segment revenue was $47.96 million in 2020. The segment recorded operating losses of $14.64 million.
Research Strategy
Apart from Quest, the other three companies generated revenue from multiple business segments. The data for the clinical laboratory services segment for both OPKO Health (Bio-Reference) and Enzo Biochem were readily available in the companies’ financial statements. The data for LabCorp clinical laboratory services segment was not provided in its annual reports or its press releases. Therefore, we were forced to estimate the clinical laboratory services segment EBITDA, SG&A, Cost of Sales, and Gross Margin using the provided percentage of revenue generated by this segment.
We were, however, unable to find the data for Price per encounter or by accession, Bad Debt Ratio, and Days Sales Outstanding for the selected companies. This was after scouring through the companies annual reports and their press releases. Additionally, we tried to locate the data leveraging various databases like the WSJ, Yahoo Finance, and Finbox, but we were unsuccessful. Finbox had the data on the financial ratios of the companies but behind a paywall. It required a premium membership to view the Days Sales Outstanding and bad debt ratios.
Furthermore, we found it impossible to triangulate the data for LabCorp, OPKO Health, and Enzo Biochem because they did not provide the balance sheet information for their clinical laboratories services segment. For Quest, there was no data for bad debts/uncollectable sales in its annual reports.