Mesa Laboratories Inc (MLAB)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	97,625	94,610	93,288	88,415	82,979	84,430	85,737	85,387	86,764	91,311	81,648	75,245	64,706	52,156	50,031	47,295	49,634	53,093	52,578	52,754
Inventory	US$ in thousands	28,122	29,738	31,767	32,675	35,973	32,879	35,559	34,642	33,739	28,039	26,874	24,606	23,719	12,117	12,122	11,178	11,965	11,837	12,900	14,230
Inventory turnover		3.47	3.18	2.94	2.71	2.31	2.57	2.41	2.46	2.57	3.26	3.04	3.06	2.73	4.30	4.13	4.23	4.15	4.49	4.08	3.71

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $97,625K ÷ $28,122K
= 3.47

The inventory turnover ratio of Mesa Laboratories Inc has fluctuated over the past few years, indicating changes in the company's efficiency in managing its inventory.

From March 31, 2020, to June 30, 2021, the inventory turnover ratio showed a generally increasing trend, improving from 3.71 to 4.13. This suggests that the company was able to sell its inventory more frequently over this period, which can be a positive sign of efficient inventory management.

However, starting from December 31, 2021, the inventory turnover ratio began to decline, reaching a low of 2.31 by December 31, 2023. This downward trend may indicate potential issues such as overstocking, obsolete inventory, or slowing sales.

There was a slight increase in the inventory turnover ratio by June 30, 2024, reaching 2.94, but it was still below the levels seen in the earlier years. This could suggest that Mesa Laboratories Inc may be working to address its inventory management challenges.

Overall, the fluctuations in the inventory turnover ratio signal the need for Mesa Laboratories Inc to closely monitor and optimize its inventory levels to ensure efficient use of resources and maintain healthy liquidity.