Charles River Laboratories (CRL)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	276,771	233,912	241,214	228,424	238,014
Short-term investments	US$ in thousands	—	998	1,063	1,024	941
Receivables	US$ in thousands	780,375	752,390	650,381	617,740	514,033
Total current liabilities	US$ in thousands	1,055,080	1,091,580	1,033,180	839,751	710,181
Quick ratio		1.00	0.90	0.86	1.01	1.06

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($276,771K + $—K + $780,375K) ÷ $1,055,080K
= 1.00

The quick ratio of Charles River Laboratories has exhibited some fluctuation over the past five years. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1.00 at year-end 2023 suggests that the company has just enough liquid assets to cover its current liabilities.

Comparing this to the previous years, we note that the quick ratio was below 1.00 in 2022 and 2021, indicating a potential liquidity challenge in those years. However, the ratio improved in 2023 compared to the previous two years.

In 2020 and 2019, the quick ratio was above 1.00, indicating that the company had more than enough liquid assets to cover its short-term liabilities in those years.

Overall, while the company's quick ratio has experienced some variability, maintaining a ratio above 1.00 is generally seen as a positive sign of a company's ability to meet its short-term obligations using its liquid assets. Further analysis would be needed to understand the reasons for these fluctuations and their potential impacts on the company's financial health.