Charles River Laboratories (CRL)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,608,660	1,439,030	1,274,100	1,201,130	1,021,320
Total current liabilities	US$ in thousands	1,055,080	1,091,580	1,033,180	839,751	710,181
Current ratio		1.52	1.32	1.23	1.43	1.44

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,608,660K ÷ $1,055,080K
= 1.52

The current ratio of Charles River Laboratories has exhibited fluctuations over the past five years. The ratio, which measures the company's ability to cover its short-term liabilities with its current assets, was 1.52 at the end of 2023, indicating an improvement from the previous year. However, it was lower compared to 2020 when it stood at 1.43. In 2021, the current ratio was at its lowest level of 1.23, but it gradually increased in 2022 and 2023. Overall, the company has generally maintained a current ratio above 1, suggesting that it has adequate short-term liquidity to meet its obligations. The variations in the current ratio may reflect changes in the company's asset and liability composition and its ability to manage working capital efficiently.