Mesa Laboratories Inc (MLAB)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	237,747	228,380	223,712	216,187	212,874	213,688	219,272	219,080	222,368	222,777	199,868	184,335	163,420	142,896	138,916	133,937	130,181	127,664	121,340	117,687
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	27,953	28,149	28,263	28,222	28,006	28,620	30,152	22,392	21,998	21,998	22,295	22,309	21,796	22,066
Fixed asset turnover		—	—	—	—	—	—	7.84	7.78	7.87	7.89	7.14	6.44	5.42	6.38	6.31	6.09	5.84	5.72	5.57	5.33

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $237,747K ÷ $—K
= —

Sure, the fixed asset turnover ratio is a financial metric that measures a company's ability to generate revenue from its investment in fixed assets such as property, plant, and equipment. The fixed asset turnover ratio is calculated by dividing net sales by the average fixed assets.

Based on the data provided for Mesa Laboratories Inc, we can see a consistent increase in the fixed asset turnover ratio over the past few years. The ratio has improved from 5.33 in March 2020 to 7.87 in December 2022, indicating that the company is becoming more efficient in generating revenue from its fixed asset base.

The upward trend in the fixed asset turnover ratio suggests that Mesa Laboratories Inc is effectively utilizing its fixed assets to generate sales. This can be a positive sign of operational efficiency and effective asset management within the company.

However, it is worth noting that the fixed asset turnover ratio has remained stagnant at 7.87 from December 2022 to June 2023 and then slightly decreased to 7.84 by the end of September 2023. This stability may indicate that Mesa Laboratories Inc is reaching a plateau in terms of maximizing revenue generation from its fixed assets.

Overall, the increasing trend in the fixed asset turnover ratio for Mesa Laboratories Inc reflects efficient asset utilization and may indicate the company's ability to drive growth and profitability through better management of fixed assets.