Charles River Laboratories (CRL)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	22,203	423,782	441,514	444,453	474,624	474,950	484,034	496,335	486,226	436,394	443,347	422,474	390,982	396,595	396,078	375,065	364,304	301,461	271,362	247,655
Total stockholders’ equity	US$ in thousands	3,461,500	3,782,270	3,722,730	3,640,440	3,596,880	3,305,990	3,251,700	3,108,600	2,976,290	2,626,850	2,647,710	2,610,180	2,534,820	2,426,570	2,318,440	2,183,930	2,114,600	1,896,940	1,752,640	1,651,980
ROE		0.64%	11.20%	11.86%	12.21%	13.20%	14.37%	14.89%	15.97%	16.34%	16.61%	16.74%	16.19%	15.42%	16.34%	17.08%	17.17%	17.23%	15.89%	15.48%	14.99%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $22,203K ÷ $3,461,500K
= 0.64%

The return on equity (ROE) of Charles River Laboratories has shown some fluctuations over the past few years. Starting at a relatively strong level of around 15% in early 2020, the ROE increased gradually throughout the year, reaching a peak of 17.23% by the end of December 2020.

However, the ROE started to decline slightly in the following quarters, hovering around the mid-16% range in early 2022. By mid-2023, there was a more notable decrease in ROE, dropping to around 14% and continuing to decline to 11.20% by the end of December 2024.

The decrease in ROE towards the latter part of the period may indicate challenges or inefficiencies in utilizing shareholder equity to generate profits. It could be a signal that the company is facing difficulties in maintaining profitability or that its capital structure may not be optimized for maximum return to shareholders. Further analysis of the company's financial performance and strategic initiatives would be needed to understand the factors contributing to the declining ROE trend.