Charles River Laboratories (CRL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		9.87	8.88	6.55	4.51	4.20	5.40	5.52	5.76	3.23	2.92	2.83	3.45	3.81	4.17	3.77	3.56	3.57	3.57	3.84	3.94
DOH	days	36.96	41.12	55.72	80.99	86.98	67.63	66.07	63.36	112.87	125.16	128.92	105.78	95.73	87.56	96.92	102.44	102.25	102.13	95.11	92.59

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.87
= 36.96

The days of inventory on hand (DOH) for Charles River Laboratories have shown fluctuations over the periods analyzed. The DOH metric represents the number of days it takes for the company to sell its entire inventory.

From March 31, 2020, to June 30, 2021, the trend was relatively stable, ranging between 92.59 days and 102.44 days. However, there was a notable increase in DOH from June 30, 2021, to September 30, 2022, where it peaked at 128.92 days. This prolonged period may indicate potential issues with inventory management or slower inventory turnover during that time frame.

Subsequently, there was a significant decrease in DOH from September 30, 2022, to December 31, 2024, where it dropped to as low as 36.96 days. Such a sharp decline suggests improvements in inventory control efficiency or faster inventory turnover rates.

Overall, the fluctuation in DOH can indicate changes in the company's inventory management practices, supply chain efficiency, or demand for its products. It is essential for Charles River Laboratories to closely monitor and manage its inventory levels to ensure optimal operations and financial performance.