Charles River Laboratories (CRL)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.72 | 5.23 | 5.45 | 5.32 | 4.76 | |
| DSO | days | 63.86 | 69.76 | 67.01 | 68.66 | 76.70 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.72
= 63.86
Based on the data provided, Charles River Laboratories has shown a decreasing trend in its Days Sales Outstanding (DSO) from 76.70 days at the end of December 31, 2020, to 63.86 days at the end of December 31, 2024.
A lower DSO indicates that the company is collecting payments from its customers more quickly, which may suggest efficient accounts receivable management.
The decrease in DSO over the years could be attributed to improvements in the company's credit policies, better collection processes, or enhanced customer relationships. This trend is generally positive as it signifies that Charles River Laboratories is able to convert its accounts receivable into cash more swiftly, potentially improving its operating cash flow and liquidity position.
However, it's essential to continue monitoring DSO levels to ensure that the company is efficiently managing its accounts receivable and maintaining healthy cash flows.
Peer comparison
Dec 31, 2024