Charles River Laboratories (CRL)

Liquidity ratios

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
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
Quick ratio 0.92 0.95 0.99 1.17 1.00 0.96 0.99 0.21 0.90 0.96 0.91 0.96 0.86 0.89 0.93 1.34 1.01 1.04 1.29 1.33
Cash ratio 0.20 0.21 0.19 0.34 0.26 0.16 0.20 0.21 0.21 0.19 0.19 0.24 0.23 0.22 0.24 0.58 0.27 0.31 0.55 0.54

The current ratio of Charles River Laboratories has shown some fluctuations over the past few years, ranging between 1.23 to 1.77. This indicates the company's ability to cover its short-term liabilities with its current assets, with a ratio above 1 indicating a healthy position.

The quick ratio, which excludes inventory from current assets, has also fluctuated, showing a range between 0.86 to 1.34. This ratio provides a more conservative measure of liquidity as it considers only the most liquid assets. A ratio above 1 is considered favorable.

The cash ratio of Charles River Laboratories has ranged from 0.16 to 0.58, indicating the company's ability to cover its short-term obligations with its cash and cash equivalents. This ratio is the most stringent measure of liquidity, and a ratio above 0.1 is typically considered acceptable.

Overall, the liquidity ratios of Charles River Laboratories reflect a generally stable liquidity position, with some fluctuations over the periods analyzed. The current ratio consistently above 1 and the quick and cash ratios within acceptable ranges suggest the company has been managing its short-term financial obligations effectively.

Additional liquidity measure

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
Cash conversion cycle days 82.74 92.12 103.01 122.57 118.03 103.77 101.67 34.41 88.89 113.17 97.63 69.25 69.10 98.24 115.69 111.20 113.65 123.30 120.29 108.35

The cash conversion cycle of Charles River Laboratories has shown fluctuations over the years based on the provided data. The company's cash conversion cycle peaked at 123.30 days on September 30, 2020, indicating that it took longer for the company to convert its investments in inventory and other resources back into cash during that period.

However, the company made significant improvements in managing its cash conversion cycle, with the cycle decreasing to 69.10 days by December 31, 2021, and further dropping to 34.41 days by March 31, 2022. This indicates that the company improved its efficiency in managing its working capital and converting its resources into cash more quickly during those periods.

Subsequently, the cash conversion cycle increased to 122.57 days by March 31, 2024, suggesting that the company faced challenges in the efficient management of its working capital and the conversion of investments into cash at that point.

Overall, the analysis of Charles River Laboratories' cash conversion cycle indicates fluctuations in efficiency in managing working capital and resources to convert them into cash over the periods specified in the data. It is essential for the company to focus on maintaining a healthy balance between managing its working capital effectively while also ensuring that it can convert its investments into cash efficiently.