Charles River Laboratories (CRL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	962,393	827,224	759,312	662,852	627,506
Payables	US$ in thousands	168,937	205,915	198,130	122,475	111,498
Payables turnover		5.70	4.02	3.83	5.41	5.63

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $962,393K ÷ $168,937K
= 5.70

The payables turnover ratio for Charles River Laboratories has varied over the past five years, indicating the company's efficiency in managing its accounts payable. In 2023, the payables turnover ratio increased to 5.70 from 4.02 in 2022, which suggests that the company is paying its suppliers more frequently within the year. This could signify improved liquidity or negotiation terms with suppliers.

Comparing to the previous years, the payables turnover ratio was 3.83 in 2021, 5.41 in 2020, and 5.63 in 2019. The fluctuation in the ratio over the years could be due to changes in payment terms or the company's overall financial performance. Overall, a higher payables turnover ratio indicates better management of payables, but it is essential to consider other factors such as industry standards and company-specific circumstances when interpreting this ratio.