Charles River Laboratories (CRL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,082,940	4,098,090	3,457,220	2,939,570	2,582,040
Property, plant and equipment	US$ in thousands	1,639,740	1,465,660	1,291,070	1,124,360	1,044,130
Fixed asset turnover		2.49	2.80	2.68	2.61	2.47

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,082,940K ÷ $1,639,740K
= 2.49

The fixed asset turnover ratio for Charles River Laboratories has exhibited a fluctuating trend over the past five years. The ratio decreased from 2.47 in 2019 to 2.61 in 2020, marking a slight improvement. Subsequently, the ratio continued to fluctuate, reaching its peak at 2.80 in 2022 before declining to 2.49 in 2023.

A fixed asset turnover ratio indicates how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio suggests that the company is generating more revenue per dollar of fixed assets, indicating efficient asset utilization. Charles River Laboratories has generally maintained a healthy fixed asset turnover ratio above 2, reflecting efficient management of its fixed assets to generate sales. However, the fluctuations in the ratio indicate potential variations in the company's asset utilization efficiency over the years, which may warrant further investigation into the factors influencing these fluctuations.