Charles River Laboratories (CRL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 194,606 | 276,771 | 233,912 | 241,214 | 228,424 |
| Short-term investments | US$ in thousands | — | — | — | 1,063 | 1,024 |
| Receivables | US$ in thousands | 720,915 | 780,375 | 752,390 | 650,381 | 617,740 |
| Total current liabilities | US$ in thousands | 994,101 | 1,055,080 | 1,091,580 | 1,033,180 | 839,751 |
| Quick ratio | 0.92 | 1.00 | 0.90 | 0.86 | 1.01 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($194,606K
+ $—K
+ $720,915K)
÷ $994,101K
= 0.92
The quick ratio, also known as the acid-test ratio, is a measure of a company's short-term liquidity, indicating its ability to meet immediate obligations using its most liquid assets. Charles River Laboratories' quick ratio has exhibited some fluctuations over the years, with values of 1.01 on December 31, 2020, 0.86 on December 31, 2021, 0.90 on December 31, 2022, 1.00 on December 31, 2023, and 0.92 on December 31, 2024.
A quick ratio of 1 or higher is generally considered healthy, suggesting that the company has sufficient liquid assets to cover its short-term liabilities without relying on selling inventory. In comparison, a quick ratio below 1 may indicate potential liquidity issues.
Charles River Laboratories' quick ratio has shown some variability but has generally remained around or above the acceptable benchmark of 1, indicating that the company has been able to meet its short-term obligations using its liquid assets without significant concerns. However, closer monitoring may be warranted to ensure sustained liquidity adequacy.
Peer comparison
Dec 31, 2024