CHARLES RIVER LABORATORIES HOLDING : revenue, balance sheet and financial ratios

In 2024, CHARLES RIVER LABORATORIES HOLDING achieves revenue of 2.7 M€. Revenue is growing positively over 8 years (CAGR: +4.4%). Slight decline of -2% vs 2023. After deducting consumption (0 €), gross margin stands at 2.7 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 158 k€, representing 5.8% of revenue. Positive scissor effect: EBITDA margin improves by +7.0 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 24.3 M€, i.e. 891.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 99%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 894.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 2340.76. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 6311.5x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 58 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 148 days. Excellent situation: suppliers finance 90 days of the operating cycle (retail model). Overall, WCR represents 2161 days of revenue, i.e. 16.4 M€ to permanently finance. Over 2016-2024, WCR increased by +300%, requiring additional financing.

Based on 103 transactions of similar company sales in 2024, the value of CHARLES RIVER LABORATORIES HOLDING is estimated at 47 009 092 € (range 16 114 496€ - 125 960 606€). With an EBITDA of 157 700€, the sector multiple of 5.0x is applied. The price/revenue ratio is 0.38x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.