Charles River Laboratories (CRL)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	276,771	157,174	200,445	201,587	233,912	193,701	200,321	241,869	241,214	212,539	222,969	465,411	228,424	242,879	402,020	372,433	238,014	164,759	200,589	126,316
Short-term investments	US$ in thousands	—	944	951	1,001	998	950	1,012	1,065	1,063	1,030	1,037	1,025	1,024	963	929	934	941	855	887	907
Total current liabilities	US$ in thousands	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	710,181	681,646	635,598	529,759
Cash ratio		0.26	0.16	0.20	0.21	0.22	0.19	0.19	0.24	0.23	0.22	0.24	0.58	0.27	0.31	0.55	0.54	0.34	0.24	0.32	0.24

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 shown some fluctuations over the past few quarters. The cash ratio measures the company's ability to cover its short-term liabilities using cash and cash equivalents, with a higher ratio indicating a stronger liquidity position.

Looking at the trend, we observe that the cash ratio has ranged between 0.16 and 0.58 over the past five quarters. The ratio reached its highest level in the first quarter of 2021 at 0.58, indicating a substantial cash position relative to its short-term obligations. However, the ratio then declined sharply in subsequent quarters before stabilizing around 0.20 to 0.26 in the most recent quarters.

Overall, Charles River Laboratories has maintained a reasonable cash ratio above 0.2, indicating that it has enough cash on hand to cover its immediate financial obligations. It is important for the company to monitor its cash ratio closely to ensure it maintains adequate liquidity for operational needs and unforeseen expenses.