Mesa Laboratories Inc (MLAB)
Inventory turnover
Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
---|---|---|---|---|---|---|
Cost of revenue | US$ in thousands | 82,937 | 85,387 | 75,245 | 46,923 | 52,325 |
Inventory | US$ in thousands | 32,675 | 34,642 | 24,606 | 11,178 | 11,178 |
Inventory turnover | 2.54 | 2.46 | 3.06 | 4.20 | 4.68 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $82,937K ÷ $32,675K
= 2.54
Mesa Laboratories Inc's inventory turnover has shown a fluctuating trend over the past five years. The inventory turnover ratio, which measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period, was 2.54 in 2024, 2.46 in 2023, 3.06 in 2022, 4.20 in 2021, and 4.68 in 2020.
A decreasing trend in inventory turnover may suggest that the company is holding onto its inventory for a longer period, which could potentially indicate overstocking or slower sales. Conversely, an increasing trend in inventory turnover indicates that the company is selling its inventory more quickly, which may signify effective inventory management and potentially avoiding obsolete stock.
In Mesa Laboratories Inc's case, the decreasing trend in inventory turnover from 2020 to 2023 followed by a slight increase in 2024 could indicate a need for closer monitoring of inventory levels and sales processes to optimize inventory management efficiency. Further analysis of the company's sales patterns and inventory levels would provide more insights into the drivers behind these fluctuations in inventory turnover.
Peer comparison
Mar 31, 2024