Charles River Laboratories (CRL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.73	2.53	3.23	3.81	3.57
DOH	days	77.23	144.22	112.87	95.73	102.25

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.73
= 77.23

The days of inventory on hand (DOH) for Charles River Laboratories have fluctuated over the past five years. The trend indicates a varying efficiency in managing inventory levels.

In 2020, the DOH was 102.25 days, suggesting that, on average, the company held inventory for over 100 days before selling it. This may indicate potential issues with inventory management efficiency or possibly overstocking.

In 2021, there was a slight improvement as the DOH decreased to 95.73 days, indicating that the company held inventory for a slightly shorter period. However, the overall level of inventory still remained relatively high.

The following year, 2022, saw a significant increase in the DOH to 112.87 days, indicating that the company took even longer to convert inventory into sales. This could potentially lead to increased carrying costs and reduced liquidity.

By 2023, the DOH rose sharply to 144.22 days, representing a substantial increase in the time it took for the company to sell its inventory. This prolonged holding period may signal inefficiencies in inventory turnover and management.

In 2024, there was a notable improvement as the DOH decreased to 77.23 days, indicating a more efficient management of inventory levels and a quicker conversion into sales compared to the previous years.

Overall, the fluctuation in Charles River Laboratories' days of inventory on hand over the years suggests varying levels of efficiency in managing inventory, with the company experiencing both improvements and challenges in controlling inventory levels.