Charles River Laboratories (CRL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 233,860 | 641,929 | 670,507 | 680,140 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 6.76% | 16.97% | 18.01% | 18.68% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $233,860K ÷ ($—K + $3,461,500K)
= 6.76%
Over the past few years, Charles River Laboratories' return on total capital has exhibited some fluctuations. It started at a fairly strong level of around 21-25% from March 2020 to June 2021. During this period, the company was effectively generating returns on the total capital employed.
However, from September 2021 onwards, there was a slight decline in the return on total capital, dropping to around 19-22% by December 2023. This could indicate a potential decrease in the company's efficiency in utilizing its capital to generate profits.
The significant drop to 6.76% in December 2024 raises concerns, suggesting a significant decline in the company's ability to generate returns on the total capital employed. This may warrant further investigation into the company's capital management strategies, profitability ratios, and overall financial performance to identify potential reasons for this substantial decrease.
Peer comparison
Dec 31, 2024