Mesa Laboratories Inc (MLAB)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	216,187	212,874	213,688	219,272	219,080	163,489	163,898	140,989	125,456	163,420	142,896	138,916	133,937	130,181	127,664	121,340	117,687	109,925	104,952	104,281
Property, plant and equipment	US$ in thousands	31,766	31,775	28,574	27,953	28,149	28,263	28,222	28,006	28,620	30,152	22,392	21,951	21,998	22,295	22,309	21,796	22,066	22,352	21,731	21,982
Fixed asset turnover		6.81	6.70	7.48	7.84	7.78	5.78	5.81	5.03	4.38	5.42	6.38	6.33	6.09	5.84	5.72	5.57	5.33	4.92	4.83	4.74

March 31, 2024 calculation

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

The fixed asset turnover ratio of Mesa Laboratories Inc has been fluctuating over the past few quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is efficiently using its fixed assets to generate sales.

From the data provided, it can be observed that the fixed asset turnover ratio has generally been on an upward trend from the end of 2019 to the middle of 2023, peaking at 7.84 in June 2023. This indicates that Mesa Laboratories Inc was effectively generating revenue from its fixed assets during this period.

However, the ratio started to decrease in the subsequent quarters, reaching 6.81 by the end of March 2024. While the ratio is still relatively high compared to historical levels, the slight decline may suggest a potential decrease in efficiency in utilizing fixed assets to generate revenue.

Overall, Mesa Laboratories Inc should continue to monitor its fixed asset turnover ratio to ensure that its assets are being utilized efficiently to drive revenue growth and profitability.