Charles River Laboratories (CRL)

Financial leverage ratio

		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
Total assets	US$ in thousands	8,195,000	7,607,010	7,772,380	7,699,440	7,602,770	7,382,770	7,529,360	7,075,050	7,024,290	7,058,440	6,720,350	5,808,960	5,490,830	5,213,340	5,240,880	5,201,790	4,692,790	4,582,560	4,625,480	3,926,640
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
Financial leverage ratio		2.28	2.30	2.39	2.48	2.55	2.81	2.84	2.71	2.77	2.91	2.90	2.66	2.60	2.75	2.99	3.15	2.87	2.99	3.18	2.81

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,195,000K ÷ $3,596,880K
= 2.28

The financial leverage ratio of Charles River Laboratories has shown some fluctuations over the time period provided. The ratio indicates the level of debt financing used by the company to support its operations and growth. A higher ratio suggests that the company is relying more on debt to finance its assets and operations.

From the data provided, we can observe that the financial leverage ratio has generally been on an upward trend from 2019 to 2020, peaking at 3.18 in March 2020. This indicates that the company increased its reliance on debt during this period. Subsequently, the ratio decreased gradually until June 2021, before starting to increase again until March 2023.

The ratio peaked at 2.91 in September 2021 and then fluctuated between 2.30 and 2.55 until March 2023. This suggests that Charles River Laboratories has been managing its debt levels to some extent during this period, although the ratio remained relatively high compared to previous periods.

Overall, the company's financial leverage ratio has shown variability over the past few years, indicating fluctuations in its debt usage. Investors and stakeholders should monitor this ratio closely to assess the company's risk exposure and financial health.