Charles River Laboratories (CRL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.05% | 76.43% | 79.81% | 78.04% | 36.52% |
| Operating profit margin | 5.52% | 15.12% | 15.88% | 17.06% | 14.72% |
| Pretax margin | 2.18% | 14.10% | 15.05% | 13.68% | 15.18% |
| Net profit margin | 0.54% | 11.62% | 11.86% | 11.31% | 12.39% |
Charles River Laboratories has shown a fluctuation in its profitability ratios over the years. The gross profit margin has increased steadily from 36.52% in December 31, 2020 to 79.81% in December 31, 2022 before dropping to 68.05% in December 31, 2024. This indicates an improvement in the efficiency of the company in generating revenue after accounting for the cost of goods sold.
In contrast, the operating profit margin fluctuated, starting at 14.72% in December 31, 2020, peaking at 17.06% in December 31, 2021, and then gradually declining to 5.52% in December 31, 2024. This suggests some challenges in controlling operating expenses efficiently over the years.
The pretax margin also fluctuated, with higher values in early years (15.18% in December 31, 2020) but declining to 2.18% by December 31, 2024. This indicates a decrease in the company's ability to generate profit before taxes relative to its revenue.
Similarly, the net profit margin experienced fluctuations, with a slight decrease from 12.39% in December 31, 2020 to 0.54% in December 31, 2024. This indicates a decline in profitability after all expenses have been accounted for, including taxes.
Overall, while the company has shown improving gross profit margins, it faces challenges in maintaining operating, pretax, and net profit margins. Further analysis of the underlying factors driving these fluctuations would be necessary to provide a more detailed assessment of the company's profitability performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.02% | 7.53% | 8.56% | 8.40% | 7.88% |
| Return on assets (ROA) | 0.29% | 5.79% | 6.40% | 5.57% | 6.63% |
| Return on total capital | 6.57% | 19.80% | 22.71% | 21.57% | 25.18% |
| Return on equity (ROE) | 0.64% | 13.20% | 16.34% | 15.42% | 17.23% |
Charles River Laboratories' profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA):
- Charles River Laboratories' Operating ROA has shown a generally increasing trend, from 7.88% in 2020 to 8.40% in 2021, peaking at 8.56% in 2022 before declining to 7.53% in 2023 and dropping significantly to 3.02% in 2024. This indicates that the company's operating income generated from its assets has fluctuated over the years, with a sharp decline in 2024.
2. Return on assets (ROA):
- ROA reflects the company's overall earnings generated from its assets. Charles River Laboratories' ROA has been somewhat inconsistent, with a decrease from 6.63% in 2020 to 5.57% in 2021, followed by an increase to 6.40% in 2022, but declining to 0.29% in 2024. The significant decrease in 2024 suggests a substantial drop in the company's profitability relative to its assets.
3. Return on total capital:
- The return on total capital represents the company's ability to generate returns for all sources of capital. Charles River Laboratories' return on total capital has exhibited a decreasing trend, from 25.18% in 2020 to 21.57% in 2021, further dropping to 6.57% in 2024. This decline indicates a decreasing ability to generate returns for both equity and debt providers.
4. Return on equity (ROE):
- ROE indicates the company's ability to generate profits from shareholders' equity. Charles River Laboratories' ROE has also shown a declining pattern, from 17.23% in 2020 to 15.42% in 2021, further decreasing to 0.64% in 2024. This significant decrease in ROE signifies a sharp decline in profitability attributed to shareholders' equity.
In summary, the analysis of Charles River Laboratories' profitability ratios highlights fluctuations and declining trends in the company's ability to generate returns from its assets, total capital, and equity over the past five years. These trends signify the need for further examination of the company's operational efficiency and financial performance to address the profitability challenges.