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.