Charles River Laboratories (CRL)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 712,248 | 675,896 | 546,765 | 532,545 | 362,924 |
| Interest expense | US$ in thousands | 136,710 | 59,291 | 73,910 | 86,433 | 60,882 |
| Interest coverage | 5.21 | 11.40 | 7.40 | 6.16 | 5.96 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $712,248K ÷ $136,710K
= 5.21
The interest coverage ratio for Charles River Laboratories has shown fluctuations over the past five years. In 2023, the interest coverage ratio decreased to 5.21 from 11.40 in 2022, indicating a lower ability to cover interest expenses with operating income. Despite this decrease, the ratio remains above 1, suggesting that the company is still generating sufficient earnings to cover its interest obligations. Comparing to the ratios in 2021, 2020, and 2019, the interest coverage ratio has been relatively stable, hovering around the 6 to 7 range. Overall, the company's interest coverage appears to demonstrate variability but generally remains at an acceptable level, providing a buffer against potential financial risks related to interest payments.
Peer comparison
Dec 31, 2023