Charles River Laboratories (CRL)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.25 5.41 5.38 — 5.46 4.87 4.88 5.10 5.32 5.05 4.93 4.80 4.63 4.82 5.07 4.92 5.05 4.78 4.42 4.73
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
Working capital turnover 7.40 9.60 8.66 9.08 11.82 9.45 10.68 10.63 14.36 8.43 9.38 4.73 7.91 7.81 5.32 5.16 8.34 8.62 6.44 6.96

Charles River Laboratories' activity ratios indicate how efficiently the company manages its operations and resources:

1. Inventory Turnover: The company's inventory turnover ratio has been gradually improving, indicating that it is selling its inventory more frequently. This suggests that Charles River Laboratories is effectively managing its inventory levels and turning over its stock more efficiently.

2. Receivables Turnover: The trend in receivables turnover ratios is relatively stable, with some fluctuations in recent periods. Maintaining a steady receivables turnover suggests that the company is efficient in collecting outstanding payments from customers, which is crucial for maintaining healthy cash flow.

3. Payables Turnover: Charles River Laboratories has shown an increasing trend in payables turnover, indicating that the company is taking longer to pay its suppliers. This could reflect strong negotiating power with suppliers or well-managed cash flow, but extended payables turnover should be monitored to ensure it does not strain supplier relationships.

4. Working Capital Turnover: The working capital turnover ratio has shown variability over time, with fluctuations in the efficiency of converting working capital into revenue. Higher ratios indicate that the company is generating more revenue with less working capital, which is generally favorable, reflecting operational efficiency.

Overall, the activity ratios for Charles River Laboratories demonstrate a mix of efficiency in managing inventory and receivables, along with some considerations regarding payment terms to suppliers. Monitoring these ratios over time can provide insights into the company's operational performance and potential areas for improvement.

Average number of days

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
Days of inventory on hand (DOH) days 101.16 78.78 77.00 74.36 112.87 125.16 128.92 105.78 95.73 87.56 96.92 102.44 102.25 102.13 95.11 92.59 93.59 96.42 86.67 86.37
Days of sales outstanding (DSO) days 69.52 67.45 67.90 — 66.88 74.93 74.84 71.55 68.61 72.32 74.09 76.04 78.84 75.65 72.05 74.12 72.28 76.33 82.51 77.24
Number of days of payables days 44.94 36.66 37.84 33.98 90.86 86.92 106.13 108.07 95.24 61.64 55.32 67.28 67.44 54.49 46.87 58.36 64.95 66.48 63.84 52.26

Days of Inventory on Hand (DOH) for Charles River Laboratories have shown some fluctuations over the periods provided, ranging from a low of 74.36 days to a high of 128.92 days. A decrease in the DOH indicates that the company is selling its inventory at a faster pace, whereas an increase suggests slower inventory turnover.

Days of Sales Outstanding (DSO) have also varied, with the range being from 66.88 days to 82.51 days. A lower DSO implies that Charles River Laboratories is collecting its receivables more quickly, while a higher DSO indicates a longer collection period.

The Number of Days of Payables has seen changes as well, with figures ranging from 33.98 days to 108.07 days. A higher number of days of payables may imply that the company is taking longer to pay its suppliers, which could impact its relationships with them.

Overall, fluctuations in these activity ratios could reflect changes in Charles River Laboratories' operational efficiency and effectiveness in managing its working capital. Further analysis and comparison with industry benchmarks could provide more insight into the company's performance in this area.

Long-term

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
Fixed asset turnover 2.50 2.84 2.81 2.84 2.80 2.75 2.66 2.73 2.68 2.91 2.74 2.70 2.54 2.74 2.70 2.58 2.49 2.49 2.40 2.58
Total asset turnover 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 0.55 0.55 0.52 0.60

Charles River Laboratories has shown consistent efficiency in utilizing its fixed assets to generate revenue, as indicated by the fixed asset turnover ratio remaining relatively stable around 2.5 to 2.9 over the past five quarters. This suggests that the company is effectively leveraging its investments in fixed assets to generate sales.

Furthermore, the total asset turnover ratio has also shown stability, hovering between 0.47 to 0.57 over the same period. This indicates that Charles River Laboratories is efficiently utilizing all its assets, not just fixed assets, to generate sales.

Overall, the stable and relatively high fixed asset turnover ratio coupled with a consistent total asset turnover ratio reflects the company's effective management of its assets to drive revenue generation.