Charles River Laboratories (CRL)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	4,120,490	4,082,940	4,098,090	3,457,220	2,939,570
Total current assets	US$ in thousands	1,403,070	1,608,660	1,439,030	1,274,100	1,201,130
Total current liabilities	US$ in thousands	994,101	1,055,080	1,091,580	1,033,180	839,751
Working capital turnover		10.08	7.38	11.79	14.35	8.13

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,120,490K ÷ ($1,403,070K – $994,101K)
= 10.08

The working capital turnover ratio for Charles River Laboratories has shown some variability in recent years. In 2020, the ratio stood at 8.13, indicating that the company was able to generate $8.13 in revenue for every dollar of working capital invested. This ratio improved significantly in 2021, reaching 14.35, suggesting a more efficient utilization of working capital to generate revenue.

However, in 2022, the working capital turnover ratio decreased slightly to 11.79, although it still remained at a relatively high level compared to the baseline year of 2020. The ratio then experienced a notable decline in 2023, dropping to 7.38, indicating a potential inefficiency in converting working capital into revenue during that period.

Nonetheless, in 2024, the ratio rebounded to 10.08, showing an improvement from the previous year. Overall, Charles River Laboratories has demonstrated varying levels of efficiency in managing its working capital to generate revenue over the years, with an overall positive trend towards more effective utilization.