Charles River Laboratories (CRL)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 9.87 8.88 6.55 4.51 4.20 5.40 5.52 5.76 3.23 2.92 2.83 3.45 3.81 4.17 3.77 3.56 3.57 3.57 3.84 3.94
Receivables turnover 5.67 5.40 5.33 5.17 5.24 5.40 5.36 — 5.46 4.87 4.88 5.10 5.32 5.05 4.93 4.80 4.63 4.82 5.07 4.92
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
Working capital turnover 9.99 8.44 7.36 5.70 7.38 9.58 8.64 9.05 11.82 9.45 10.68 10.63 14.36 8.43 9.38 4.73 7.91 7.81 5.32 5.16

Based on the activity ratios provided for Charles River Laboratories, we can draw several insights:

1. Inventory Turnover: The company's inventory turnover ratio has fluctuated over the periods, ranging from 2.83 to 9.87. A higher inventory turnover ratio indicates that the company is effectively managing its inventory levels and selling its products efficiently.

2. Receivables Turnover: The receivables turnover ratio for Charles River Laboratories has been relatively stable over time, with values ranging from 4.63 to 5.67. This indicates that the company is collecting its accounts receivable in a timely manner.

3. Payables Turnover: The payables turnover ratio shows how many times a company pays off its accounts payables within a specific period. Charles River Laboratories has shown fluctuations in its payables turnover ratio, ranging from 3.38 to 21.95. A higher ratio may indicate that the company is efficiently managing its payments to suppliers.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. Charles River Laboratories' working capital turnover has varied from 4.73 to 14.36, indicating fluctuating efficiency in utilizing its working capital to generate sales.

Overall, the company's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the periods analyzed. It is essential for Charles River Laboratories to monitor these ratios regularly to ensure optimal utilization of its resources and maintain strong financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 36.96 41.12 55.72 80.99 86.98 67.63 66.07 63.36 112.87 125.16 128.92 105.78 95.73 87.56 96.92 102.44 102.25 102.13 95.11 92.59
Days of sales outstanding (DSO) days 64.40 67.63 68.53 70.66 69.69 67.61 68.07 — 66.88 74.93 74.84 71.55 68.61 72.32 74.09 76.04 78.84 75.65 72.05 74.12
Number of days of payables days 18.62 16.63 21.25 29.07 38.64 31.47 32.47 28.96 90.86 86.92 106.13 108.07 95.24 61.64 55.32 67.28 67.44 54.49 46.87 58.36

Based on the provided data, we can analyze the activity ratios of Charles River Laboratories as follows:

1. Days of Inventory on Hand (DOH):
- The DOH measures the average number of days the company holds inventory before it is sold.
- Charles River Laboratories experienced fluctuations in its DOH over the observed periods, ranging from a low of 36.96 days to a high of 128.92 days.
- A decreasing trend in DOH over time is generally positive as it indicates the company is selling its inventory more quickly.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for Charles River Laboratories to collect revenue after a sale is made.
- The company's DSO ranged from 64.40 days to 78.84 days during the period.
- A decreasing DSO suggests improvements in the company's collection process and efficiency in converting sales into cash.

3. Number of Days of Payables:
- This ratio represents the average number of days it takes for Charles River Laboratories to pay its suppliers.
- The company's payables days ranged from 16.63 days to 108.07 days.
- A lower number of days of payables indicates the company is paying its suppliers more quickly, which may improve vendor relationships but could also strain cash flow.

In summary, monitoring these activity ratios can provide insights into Charles River Laboratories' efficiency in managing its inventory, collecting receivables, and handling payables, which are crucial aspects of its operational performance and working capital management.

Long-term

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
Fixed asset turnover 2.55 2.48 2.52 2.51 2.49 2.83 2.81 2.83 2.80 2.75 2.66 2.73 2.68 2.91 2.74 2.70 2.54 2.74 2.70 2.58
Total asset turnover 0.54 0.51 0.51 0.50 0.50 0.57 0.55 0.55 0.54 0.51 0.49 0.51 0.49 0.47 0.47 0.50 0.52 0.53 0.51 0.51

The Fixed Asset Turnover ratio for Charles River Laboratories has shown fluctuations over the reporting periods, ranging from a low of 2.48 to a high of 2.91. The company's ability to generate sales using its fixed assets has varied, with the ratio generally staying within a narrow range.

On the other hand, the Total Asset Turnover ratio has seen more consistent movement, fluctuating between 0.47 and 0.57. This indicates that Charles River Laboratories is effectively utilizing its total assets to generate revenue, with a trend towards higher efficiency in asset utilization over the years.

Overall, the company's long-term activity ratios suggest that while there have been fluctuations in the efficiency of utilizing fixed assets, there is a positive trend in optimizing total asset turnover to drive revenue generation.