Charles River Laboratories (CRL)

Payables 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
Payables	US$ in thousands	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	111,498	107,231	99,381	78,523
Payables turnover		8.12	9.96	9.64	10.74	4.02	4.20	3.44	3.38	3.83	5.92	6.60	5.43	5.41	6.70	7.79	6.25	5.62	5.49	5.72	6.98

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,371,963K ÷ $168,937K
= 8.12

The payables turnover ratio for Charles River Laboratories has shown fluctuations over the past few quarters, ranging from 3.38 to 10.74. The payables turnover ratio measures how efficiently a company is managing its accounts payable by indicating how many times a company pays off its suppliers in a given period.

A higher payables turnover ratio generally indicates that the company is paying off its suppliers more frequently, which could imply more efficient cash management and potentially stronger supplier relationships. Conversely, a lower ratio could indicate that the company is taking longer to pay its suppliers, which could strain relationships or suggest cash flow issues.

In the case of Charles River Laboratories, the trend has shown variability, with some quarters exhibiting significantly higher ratios (e.g., 10.74) and others showing lower ratios (e.g., 3.38). This inconsistency could be influenced by various factors such as seasonal changes in the business, variations in supplier payment terms, or shifts in purchasing patterns.

Overall, it would be important for stakeholders to further investigate the reasons behind the fluctuations in the payables turnover ratio to better understand the company's payment practices and the impact on its financial performance and supplier relationships.