Charles River Laboratories (CRL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	276,771	233,912	241,214	228,424	238,014
Short-term investments	US$ in thousands	—	998	1,063	1,024	941
Total current liabilities	US$ in thousands	1,055,080	1,091,580	1,033,180	839,751	710,181
Cash ratio		0.26	0.22	0.23	0.27	0.34

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($276,771K + $—K) ÷ $1,055,080K
= 0.26

The cash ratio of Charles River Laboratories has varied over the past five years, indicating fluctuations in the company's ability to cover short-term liabilities with its available cash and cash equivalents. In 2023, the cash ratio stands at 0.26, showing an improvement compared to 2022 (0.22) and 2021 (0.23) but a decline from the ratios in 2020 (0.27) and 2019 (0.34).

A cash ratio of 0.26 means that for every dollar of current liabilities, Charles River Laboratories had $0.26 in cash and cash equivalents at the end of 2023. This implies a moderate level of liquidity and suggests that the company may need to rely on other sources of liquidity or manage its cash position more efficiently.

Overall, while the trend in the cash ratio has been somewhat inconsistent in recent years, it is important for Charles River Laboratories to continue monitoring and managing its cash position effectively to ensure it can meet its short-term obligations promptly.