Charles River Laboratories (CRL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 194,606 | 276,771 | 233,912 | 241,214 | 228,424 |
| Short-term investments | US$ in thousands | — | — | — | 1,063 | 1,024 |
| Total current liabilities | US$ in thousands | 994,101 | 1,055,080 | 1,091,580 | 1,033,180 | 839,751 |
| Cash ratio | 0.20 | 0.26 | 0.21 | 0.23 | 0.27 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($194,606K
+ $—K)
÷ $994,101K
= 0.20
The cash ratio of Charles River Laboratories has experienced fluctuations over the past five years based on the provided data. As of December 31, 2020, the cash ratio stood at 0.27, indicating that the company had $0.27 in cash and cash equivalents for every dollar of current liabilities. However, this ratio decreased to 0.23 by December 31, 2021, and further declined to 0.21 by December 31, 2022.
Despite the downward trend, there was a slight improvement in the cash ratio by December 31, 2023, where it increased to 0.26. Nevertheless, by the end of December 31, 2024, the cash ratio decreased again to 0.20.
The decreasing trend in the cash ratio of Charles River Laboratories suggests that the company may be facing challenges in maintaining sufficient liquidity to cover its short-term obligations. It is essential for the company to carefully manage its cash position and liquidity to ensure financial stability and meet its financial commitments in the future.
Peer comparison
Dec 31, 2024