Charles River Laboratories (CRL)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.53	3.23	3.81	3.57	3.91
DOH	days	144.22	112.87	95.73	102.25	93.45

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.53
= 144.22

The days of inventory on hand (DOH) for Charles River Laboratories has shown a general increasing trend over the past five years, indicating a longer period of time it takes for the company to sell off its inventory.

In 2019, the DOH was at 93.45 days, and it increased to 102.25 days in 2020. There was a further increase to 95.73 days in 2021, followed by a significant jump to 112.87 days in 2022. By the end of 2023, the DOH reached 144.22 days, the highest level in the five-year period analyzed.

The rising trend in the DOH suggests that Charles River Laboratories may be facing challenges in efficiently managing its inventory levels and/or experiencing slower inventory turnover. This could potentially lead to higher carrying costs, obsolete inventory, and lower profitability if not addressed effectively. Further investigation into the causes of this trend and potential strategies to improve inventory management efficiency may be warranted.