Charles River Laboratories (CRL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,120,490 | 4,082,940 | 4,098,090 | 3,457,220 | 2,939,570 |
| Property, plant and equipment | US$ in thousands | 1,604,010 | 1,639,740 | 1,465,660 | 1,291,070 | 1,124,360 |
| Fixed asset turnover | 2.57 | 2.49 | 2.80 | 2.68 | 2.61 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,120,490K ÷ $1,604,010K
= 2.57
The fixed asset turnover ratio for Charles River Laboratories has shown a consistent upward trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio increased from 2.61 in 2020 to 2.68 in 2021, further improving to 2.80 in 2022, indicating that the company generated $2.80 in revenue for every $1 invested in fixed assets.
However, there was a slight decrease in the fixed asset turnover ratio in 2023 to 2.49, which suggests that the company's efficiency in utilizing its fixed assets to generate revenue dipped during that period. Charles River Laboratories did manage to rebound in 2024, with the ratio climbing back up to 2.57.
Overall, the general positive trend in the fixed asset turnover ratio indicates that Charles River Laboratories has been leveraging its fixed assets effectively to drive revenue growth. This metric reflects the company's ability to efficiently turn its investment in fixed assets into sales, a key aspect of operational performance and financial efficiency.
Peer comparison
Dec 31, 2024