Charles River Laboratories (CRL)

Quick 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
Cash	US$ in thousands	194,606	210,171	179,213	327,039	276,771	157,174	200,445	201,587	233,912	193,701	200,321	241,869	241,214	212,539	222,969	465,411	228,424	242,879	402,020	372,433
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	950	1,012	1,065	1,063	1,030	1,037	1,025	1,024	963	929	934
Receivables	US$ in thousands	720,915	754,207	762,221	786,980	780,375	799,310	800,646	—	752,390	778,499	755,343	706,796	650,381	660,452	644,027	610,566	617,740	572,058	532,531	542,390
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
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

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 of Charles River Laboratories, a measure of the company's ability to meet its short-term obligations with its most liquid assets, has fluctuated over the past few years.

Starting at 1.33 as of March 31, 2020, the quick ratio gradually decreased to 0.86 by December 31, 2021. This decline may indicate potential difficulties in meeting short-term financial obligations with quick assets alone.

There was a slight improvement in the quick ratio to 1.17 as of March 31, 2024, suggesting a better ability to cover short-term liabilities with liquid assets. However, this improvement was followed by a decrease to 0.92 by December 31, 2024.

The quick ratio fluctuated within a range of 0.21 to 1.34 during the period under review. It is essential to continue monitoring this ratio to ensure the company maintains an appropriate level of liquidity to meet its short-term obligations efficiently.