Mesa Laboratories Inc (MLAB)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	82,937	82,979	84,430	85,737	85,387	62,997	67,544	57,881	51,478	64,706	52,156	50,031	46,923	49,134	52,467	51,842	52,390	47,783	41,979	42,317
Inventory	US$ in thousands	32,675	35,973	32,879	35,559	34,642	33,739	28,039	26,874	24,606	23,719	12,117	24,606	11,178	11,965	11,837	12,900	11,178	18,804	6,848	6,971
Inventory turnover		2.54	2.31	2.57	2.41	2.46	1.87	2.41	2.15	2.09	2.73	4.30	2.03	4.20	4.11	4.43	4.02	4.69	2.54	6.13	6.07

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $82,937K ÷ $32,675K
= 2.54

Mesa Laboratories Inc's inventory turnover has shown variability over the past few quarters. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring how many times the inventory is sold and replaced during a specific period.

The inventory turnover ratios range from a low of 1.87 in Dec 31, 2022, to a high of 6.13 in Sep 30, 2019. The recent trend indicates an improvement in inventory turnover since Dec 31, 2022, with the ratio increasing to 2.54 as of Mar 31, 2024. This suggests that Mesa Laboratories Inc has been more effective in selling its inventory and replenishing it in a timely manner.

It is important to note the significant increase in inventory turnover from Sep 30, 2021 (4.30) to Dec 31, 2021 (2.03), which may indicate a change in the company's inventory management strategy during that period. Overall, Mesa Laboratories Inc's inventory turnover ratios display fluctuations, but the recent increase is a positive sign of improved efficiency in managing inventory levels.