Charles River Laboratories (CRL)

Receivables 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
Revenue (ttm)	US$ in thousands	4,086,133	4,070,653	4,059,413	4,065,363	4,086,910	4,314,900	4,293,342	4,227,890	4,106,274	3,792,022	3,683,743	3,605,712	3,459,843	3,333,185	3,172,755	2,930,880	2,859,828	2,759,976	2,697,739	2,671,095
Receivables	US$ in thousands	720,915	754,207	762,221	786,980	780,375	799,310	800,646	—	752,390	778,499	755,343	706,796	650,381	660,452	644,027	610,566	617,740	572,058	532,531	542,390
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,086,133K ÷ $720,915K
= 5.67

The receivables turnover ratio measures how efficiently a company collects cash from customers to whom it has extended credit. For Charles River Laboratories, the receivables turnover has shown some fluctuations over the quarters provided. From the data, the receivables turnover ratio has generally been within a range of around 4.5 to 5.7.

Analyzing the trend over the period, we observe that the company's receivables turnover increased slightly from March 2020 to June 2020, then decreased in the following quarters until December 2020. However, there was a gradual improvement in the ratio in the subsequent quarters, with some fluctuations but still showing an upward trend overall.

An increasing receivables turnover ratio indicates that Charles River Laboratories has been collecting outstanding payments from customers more efficiently, which is a positive sign for the company's liquidity and cash flow management. A higher turnover implies that receivables are being converted into cash more quickly.

It is worth noting that for March 2023, no data was available, which may indicate a reporting gap or other factors affecting the information availability for that period. Nevertheless, the overall trend suggests that Charles River Laboratories has been managing its accounts receivable effectively, ensuring timely collection and cash flow generation from its credit sales.

The recent ratio of around 5.67 as of December 31, 2024, indicates that the company is collecting on its credit sales approximately 5.67 times a year. This suggests that Charles River Laboratories has been successful in managing its accounts receivable efficiently and maintaining a healthy cash conversion cycle.