Charles River Laboratories (CRL)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,371,963	1,357,393	1,352,245	1,288,892	827,224	762,697	726,949	763,190	759,311	757,433	731,898	689,736	662,854	648,178	646,148	642,342	626,586	588,727	568,203	548,378
Inventory	US$ in thousands	380,259	292,972	285,280	262,584	255,809	261,522	256,765	221,175	199,146	181,694	194,341	193,584	185,695	181,367	168,366	162,938	160,660	155,526	134,925	129,765
Inventory turnover		3.61	4.63	4.74	4.91	3.23	2.92	2.83	3.45	3.81	4.17	3.77	3.56	3.57	3.57	3.84	3.94	3.90	3.79	4.21	4.23

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,371,963K ÷ $380,259K
= 3.61

The inventory turnover ratio for Charles River Laboratories fluctuated over the past few quarters, indicating variations in how efficiently the company managed its inventory. Generally, a higher inventory turnover ratio is preferred as it signifies that the company is selling its products quickly and efficiently.

Looking at the trend, the inventory turnover ratio increased from 3.23 in December 2022 to 4.91 in March 2023, suggesting an improvement in inventory management efficiency during this period. However, the ratio then decreased to 3.23 in December 2023, indicating a decrease in the speed at which inventory is being sold compared to the previous quarter.

Overall, Charles River Laboratories has shown some fluctuations in its inventory turnover ratio throughout the periods analyzed, which could be influenced by various factors such as demand fluctuations, production inefficiencies, or changes in the company's sales strategy. Further analysis of the company's operations and market conditions may provide additional insights into the reasons behind these fluctuations and how they may impact the company's financial performance.