Charles River Laboratories (CRL)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.67	5.40	5.33	5.17	5.24	5.40	5.36	—	5.46	4.87	4.88	5.10	5.32	5.05	4.93	4.80	4.63	4.82	5.07	4.92
DSO	days	64.40	67.63	68.53	70.66	69.69	67.61	68.07	—	66.88	74.93	74.84	71.55	68.61	72.32	74.09	76.04	78.84	75.65	72.05	74.12

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.67
= 64.40

Days of Sales Outstanding (DSO) is a financial metric that measures how long it takes for a company to collect payment after making a sale. Lower DSO values indicate that the company is collecting payments more quickly, which is generally seen as a positive sign.

Analyzing the DSO trend of Charles River Laboratories based on the provided data reveals fluctuations over the quarters. From March 31, 2020, to December 31, 2021, there was an overall upward trend in DSO, indicating a potential delay in collecting payments from customers. However, from December 31, 2021, to December 31, 2024, there was a gradual decline in DSO, suggesting an improvement in the company's ability to collect payments more efficiently.

Specifically, DSO decreased from 78.84 days on December 31, 2021, to 64.40 days on December 31, 2024. This improvement may indicate enhanced credit and collections processes or better customer payment behavior.

The DSO metric for March 31, 2023, is missing from the data provided, which limits the complete analysis for that specific quarter. However, the general downward trend in DSO from December 31, 2021, to December 31, 2024, is a positive sign for Charles River Laboratories, as it suggests efficient management of accounts receivable and improved cash flow.

Overall, monitoring DSO is crucial for assessing the company's liquidity, cash flow management, and effectiveness in collecting receivables. It is apparent that Charles River Laboratories has shown improvement in this area over the specified timeframe, indicating a positive financial performance trend.