Charles River Laboratories (CRL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,195,000 | 7,602,770 | 7,024,290 | 5,490,830 | 4,692,790 |
| Total stockholders’ equity | US$ in thousands | 3,596,880 | 2,976,290 | 2,534,820 | 2,114,600 | 1,634,580 |
| Financial leverage ratio | 2.28 | 2.55 | 2.77 | 2.60 | 2.87 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,195,000K ÷ $3,596,880K
= 2.28
The financial leverage ratio for Charles River Laboratories has shown a decreasing trend over the past five years, declining from 2.87 in 2019 to 2.28 in 2023. This indicates that the company's reliance on debt to finance its operations has reduced over time. A lower financial leverage ratio implies that a smaller portion of the company's assets are funded by debt, which may lower the company's risk profile and increase its financial stability. However, it is essential to analyze this trend in conjunction with other financial metrics and consider the company's overall financial strategy to gain a comprehensive understanding of its leverage position.
Peer comparison
Dec 31, 2023