Charles River Laboratories (CRL)

Current ratio

		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
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
Current ratio		1.41	1.48	1.58	1.75	1.52	1.45	1.49	1.48	1.32	1.40	1.33	1.34	1.23	1.40	1.36	1.77	1.43	1.45	1.70	1.75

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,403,070K ÷ $994,101K
= 1.41

The current ratio of Charles River Laboratories has shown fluctuations over the years, ranging from a low of 1.23 on December 31, 2021, to a high of 1.77 on March 31, 2021. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable.

On analyzing the trend, we observe that the current ratio has been relatively stable around the range of 1.30 to 1.50 in recent quarters, indicating that the company has a reasonable level of current assets to cover its short-term liabilities. However, it is essential to note the decrease from 1.58 on June 30, 2024, to 1.41 on December 31, 2024, which could merit further investigation to understand the underlying reasons for this decline.

Overall, the current ratio of Charles River Laboratories suggests that the company has maintained a healthy liquidity position over the periods analyzed, although management should continue to monitor and manage its current assets and liabilities effectively to ensure ongoing financial stability.