Charles River Laboratories International (Charles River Laboratories International) Operating Income : $575 Mil (TTM As of Mar. 2024)

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What is Charles River Laboratories International Operating Income?

Charles River Laboratories International's Operating Income for the three months ended in Mar. 2024 was $126 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $575 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Charles River Laboratories International's Operating Income for the three months ended in Mar. 2024 was $126 Mil. Charles River Laboratories International's Revenue for the three months ended in Mar. 2024 was $1,012 Mil. Therefore, Charles River Laboratories International's Operating Margin % for the quarter that ended in Mar. 2024 was 12.45%.

Good Sign:

Charles River Laboratories International Inc operating margin is expanding. Margin expansion is usually a good sign.

Charles River Laboratories International's 5-Year average Growth Rate for Operating Margin % was 2.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Charles River Laboratories International's annualized ROC % for the quarter that ended in Mar. 2024 was 5.05%. Charles River Laboratories International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 24.92%.

Charles River Laboratories International Operating Income Historical Data

The historical data trend for Charles River Laboratories International's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Charles River Laboratories International Operating Income Chart

Charles River Laboratories International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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351.15

432.73

589.86

650.98

617.26

Charles River Laboratories International Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															167.89	164.95	151.50	132.92	125.98

Charles River Laboratories International Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $575 Mil.

Charles River Laboratories International (NYSE:CRL) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Charles River Laboratories International's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	503.908 * ( 1 - 24.77% )	/	( (7521.468	+	7505.17)	/ 2 )
=	379.0899884	/	7513.319
=	5.05 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8195.001	-	396.762	-	( 276.771	-	max(0, 1055.082	-	1608.662	+	276.771	))
=	7521.468

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8152.783	-	320.574	-	( 327.039	-	max(0, 954.81	-	1668.188	+	327.039	))
=	7505.17

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Charles River Laboratories International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	536.048	/	( ( (2033.77 + max(74.511, 0))	+	(2003.102 + max(189.953, 0)) )	/	2 )
=	536.048	/	( ( 2108.281	+	2193.055 )	/	2 )
=	536.048	/	2150.668
=	24.92 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(578.077	+	380.259	+	171.257)	-	(396.762	+	241.82	+	416.5)
=	74.511

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(590.594	+	361.281	+	192.888)	-	(320.574	+	256.383	+	377.853)
=	189.953

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Charles River Laboratories International's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	125.977	/	1011.56
	=	12.45 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Charles River Laboratories International Operating Income Related Terms

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Charles River Laboratories International (Charles River Laboratories International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Charles River Laboratories International Inc (NYSE:CRL) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

CRL:Mexico RV6:Germany

Address

251 Ballardvale Street, Wilmington, MA, USA, 01887

Website

https://www.criver.com

Charles River Laboratories was founded in 1947 and is a leading provider of drug discovery and development services. The company's research model & services segment is the leading provider of animal models for laboratory testing, which breeds and delivers animal research models with specific genetic characteristics for preclinical studies around the world. The discovery & safety assessment segment includes services required to take a drug through the early development process, including discovery services. The manufacturing support segment includes microbial solutions, which provides in vitro (non-animal) testing products, biologics testing services, and avian vaccine services.

Executives

Victoria L Creamer	officer: EVP & Chief People Officer	164 PINE HILL ROAD, NEW FAIRFIELD CT 06812
Joseph W Laplume	officer: EVP, Corp Strategy & Develop	251 BALLARDVALE STREET, WILMINGTON MA 01887
Birgit Girshick	officer: Corporate Executive VP	251 BALLARDVALE STREET, WILMINGTON MA 01887
James C Foster	director, officer: President and CEO	251 BALLARDVALE ST, WILMINGTON MA 01887
Richard F Wallman	director	HONEYWELL, 101 COLUMBIA ROAD, MORRISTOWN NJ 07962
William D Barbo	officer: Corporate Executive VP & CCO	251 BALLARDVALE STREET, WILMINGTON MA 01887
Michael Gunnar Knell	officer: CSVP&Chief Accounting Officer	BRUKER CORPORATION, 40 MANNING ROAD, BILLERICA MA 01821
George Massaro	director
Shannon M Parisotto	officer: CEVP, Disc & Safety Assessment	251 BALLARDVALE ST, WILMINGTON MA 01887
Flavia Pease	officer: Corporate Executive VP	251 BALLARDVALE STREET, WILMINGTON MA 01887
David Ross Smith	officer: Corporate Executive VP & CFO	251 BALLARDVALE STREET, WILMINGTON MA 01887
Deborah Turner Kochevar	director	251 BALLARDVALE STREET, WILMINGTON MA 01887
Milne George M Jr	director
Stephen D Chubb	director	C/O MATRITECH INC, 330 NEVADA STREET, NEWTON MA 02460
George Llado	director	251 BALLARDVALE STREET, WILMINGTON MA 01887