Charles River Laboratories (CRL)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,750,437	2,984,151	2,286,691	1,628,258	1,595,671	1,581,101	1,575,953	1,512,600	827,224	762,697	726,949	763,190	759,311	757,433	731,898	689,736	662,854	648,178	646,148	642,342
Payables	US$ in thousands	140,337	135,963	133,101	129,682	168,937	136,341	140,204	120,004	205,915	181,629	211,381	225,977	198,130	127,913	110,926	127,129	122,475	96,758	82,978	102,697
Payables turnover		19.60	21.95	17.18	12.56	9.45	11.60	11.24	12.60	4.02	4.20	3.44	3.38	3.83	5.92	6.60	5.43	5.41	6.70	7.79	6.25

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,750,437K ÷ $140,337K
= 19.60

The payables turnover ratio for Charles River Laboratories has fluctuated over the past few years, indicating varying efficiencies in managing its accounts payable. The ratio peaked at 21.95 for the quarter ending September 30, 2024, suggesting that the company was able to pay off its suppliers nearly 22 times during that period. This high turnover could indicate strong liquidity and effective working capital management.

On the other hand, the lowest payables turnover ratio of 3.38 was observed for the quarter ending March 31, 2022, signaling that the company took a longer time to settle its payables during that period. A low turnover ratio may imply that Charles River Laboratories was holding onto its payables for a longer period, possibly to preserve cash or take advantage of supplier credit terms.

Overall, fluctuations in the payables turnover ratio can provide insights into the company's payment policies, relationship with suppliers, cash flow management, and overall financial health. Further analysis would be necessary to understand the reasons behind these fluctuations and their implications for the company's operations and financial performance.