Charles River Laboratories (CRL)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	712,248	749,870	737,230	722,418	675,896	570,831	575,480	571,225	546,765	578,401	594,850	555,703	532,545	457,733	381,483	357,660	362,924	324,417	336,194	346,736
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	1,634,580	1,532,310	1,455,070	1,398,110
Return on total capital		19.80%	22.68%	22.67%	23.24%	22.71%	21.73%	21.74%	21.88%	21.57%	23.84%	25.66%	25.45%	25.18%	24.13%	21.77%	21.65%	22.20%	21.17%	23.11%	24.80%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $712,248K ÷ ($—K + $3,596,880K)
= 19.80%

Charles River Laboratories has shown a relatively stable trend in its return on total capital over the past few quarters. The return on total capital has ranged from a low of 19.80% to a high of 25.66% during this period. The company's return on total capital has generally been above 20%, indicating efficient utilization of both equity and debt in generating profits.

The increasing trend observed in the return on total capital from March 2020 to September 2021 indicates improving efficiency in capital allocation and profitability. However, there was a slight decline in the return on total capital in the most recent quarter, ending December 2023, compared to the previous quarter. This could be an area that investors may want to monitor closely in future quarters to ensure that the company maintains its profitability and efficient use of capital. Overall, the return on total capital for Charles River Laboratories reflects a solid performance in generating returns for its investors.