Charles River Laboratories (CRL)

Working capital 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
Total current assets	US$ in thousands	1,403,070	1,494,720	1,499,270	1,668,190	1,608,660	1,444,320	1,504,780	1,448,360	1,439,030	1,415,350	1,393,090	1,333,090	1,274,100	1,379,040	1,267,910	1,423,210	1,201,130	1,140,270	1,234,720	1,208,280
Total current liabilities	US$ in thousands	994,101	1,012,220	947,519	954,810	1,055,080	993,816	1,007,620	981,392	1,091,580	1,014,190	1,048,140	993,839	1,033,180	983,751	929,610	803,376	839,751	787,014	727,936	690,896
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,086,133K ÷ ($1,403,070K – $994,101K)
= 9.99

The working capital turnover ratio of Charles River Laboratories has shown fluctuations over the past few years. The ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher turnover ratio indicates better efficiency in managing working capital.

From March 2020 to December 2021, the working capital turnover ratio increased steadily from 5.16 to 14.36, indicating significant improvement in working capital utilization efficiency. This could be a sign of effective inventory and receivables management, resulting in increased sales relative to the level of working capital employed.

However, from March 2022 to December 2024, the ratio experienced some fluctuations, ranging from 5.70 to 9.99. Despite the fluctuations, the working capital turnover remained relatively high compared to the earlier periods, signifying continued efficiency in managing working capital.

Overall, the trend in Charles River Laboratories' working capital turnover suggests that the company has been successful in utilizing its working capital effectively to support its sales activities. However, it is essential for the company to sustain this efficiency over time to ensure continued operational success.