Charles River Laboratories (CRL)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 22,203 | 474,624 | 486,226 | 390,982 | 364,304 |
| Total stockholders’ equity | US$ in thousands | 3,461,500 | 3,596,880 | 2,976,290 | 2,534,820 | 2,114,600 |
| ROE | 0.64% | 13.20% | 16.34% | 15.42% | 17.23% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $22,203K ÷ $3,461,500K
= 0.64%
Charles River Laboratories' return on equity (ROE) has shown some fluctuations over the past five years. Starting from 17.23% in December 2020, the ROE decreased to 15.42% by December 2021, then increased to 16.34% by December 2022. However, there was a notable decline in ROE to 13.20% by December 2023, followed by a significant drop to 0.64% by December 2024.
The decreasing trend in ROE from 2020 to 2024 may indicate potential challenges in generating profits relative to the equity invested in the company. The sharp decrease in ROE in 2024 could raise concerns about the company's efficiency in utilizing shareholder equity to generate profits.
Further analysis of the company's financial performance, operational efficiency, and management effectiveness may be necessary to understand the reasons behind the declining trend in ROE and to identify areas for improvement.
Peer comparison
Dec 31, 2024