Charles River Laboratories (CRL)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,316,390	962,393	827,224	759,312	662,852
Inventory	US$ in thousands	278,544	380,259	255,809	199,146	185,695
Inventory turnover		4.73	2.53	3.23	3.81	3.57

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,316,390K ÷ $278,544K
= 4.73

Charles River Laboratories' inventory turnover has shown variability over the past five years.

In 2020, the inventory turnover was 3.57, indicating that the company converted its inventory into sales approximately 3.57 times during the year. This number increased slightly to 3.81 in 2021, suggesting a more efficient management of inventory.

However, in 2022, the inventory turnover decreased to 3.23, indicating that the company took longer to sell its inventory compared to the previous year. This trend continued in 2023 with a further decrease to 2.53, suggesting potential issues with inventory management or sales performance.

In 2024, there was a significant improvement in inventory turnover to 4.73, reflecting a reversal of the declining trend and a more efficient use of inventory to generate sales.

Overall, while there were fluctuations in inventory turnover over the years, Charles River Laboratories managed to improve the efficiency of its inventory management in 2021 and 2024, albeit experiencing temporary challenges in 2022 and 2023.