Charles River Laboratories (CRL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.17 | 2.28 | 2.55 | 2.77 | 2.60 |
The solvency ratios of Charles River Laboratories indicate a strong financial position with consistently low values across various metrics. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been recorded at 0.00 for the years 2020 to 2024, suggesting that the company has financed its operations primarily through equity rather than debt.
Additionally, the Financial leverage ratio, which measures the proportion of a company's debt to its equity, has shown a declining trend from 2.60 in 2020 to 2.17 in 2024. This indicates that Charles River Laboratories has been reducing its reliance on debt financing in comparison to equity, which is a positive sign for investors and creditors as it implies lower financial risk.
Overall, the solvency ratios of Charles River Laboratories reflect a prudent and conservative financial management approach, with a strong emphasis on maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.80 | 5.21 | 11.40 | 7.40 | 6.16 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of covering its interest obligations.
Analyzing Charles River Laboratories' interest coverage based on the provided data, the trend shows improvement over the years. As of December 31, 2020, the interest coverage ratio was 6.16, which increased to 7.40 by December 31, 2021. This indicates the company's ability to cover its interest payments improved during this period.
By December 31, 2022, the interest coverage ratio further increased to 11.40, which reflects a significant improvement in the company's financial health. However, by December 31, 2023, the interest coverage ratio decreased to 5.21, signaling a potential weakening in its ability to cover interest obligations.
The most recent data as of December 31, 2024, shows a further decline in the interest coverage ratio to 1.80. This significant decrease may raise concerns about Charles River Laboratories' ability to cover its interest expenses effectively and may indicate increased financial risk.
In conclusion, while the interest coverage ratio of Charles River Laboratories has shown fluctuations over the years, with periods of improvement and decline, it is essential for stakeholders to monitor this ratio to assess the company's ability to meet its interest obligations and manage its debt effectively.