Mesa Laboratories Inc (MLAB)

Fixed asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	216,187	219,080	184,335	133,937	117,687
Property, plant and equipment	US$ in thousands	31,766	28,149	28,620	21,998	22,066
Fixed asset turnover		6.81	7.78	6.44	6.09	5.33

March 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $216,187K ÷ $31,766K
= 6.81

Mesa Laboratories Inc's fixed asset turnover ratio has exhibited a fluctuating trend over the past five years. The ratio indicates how efficiently the company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio typically suggests more efficient utilization of fixed assets to generate sales.

In the most recent fiscal year, ending March 31, 2024, Mesa Laboratories Inc achieved a fixed asset turnover ratio of 6.81, showing a decrease compared to the previous year's ratio of 7.78. This reduction may imply a slightly less efficient utilization of fixed assets to generate revenue during the period.

Despite the slight decline in the latest year, Mesa Laboratories Inc's fixed asset turnover ratios in recent years have generally remained at healthy levels, ranging from 5.33 to 7.78. This consistency suggests a relatively stable and efficient use of fixed assets to drive sales over the analyzed period.

Overall, while the fluctuation in Mesa Laboratories Inc's fixed asset turnover ratio indicates some variability in asset efficiency, the company has maintained a generally strong performance in converting its investment in fixed assets into revenue over the past five years.