Mesa Laboratories Inc (MLAB)

Payables 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
Payables	US$ in thousands	6,041	6,134	7,897	4,473	3,408
Payables turnover		13.73	13.92	9.53	10.49	15.35

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $82,937K ÷ $6,041K
= 13.73

The payables turnover ratio for Mesa Laboratories Inc has been relatively stable over the past five years, ranging from 9.53 to 15.35. This ratio indicates the company's ability to efficiently manage its accounts payable by measuring how many times a company pays off its average accounts payable balance in a given period.

A higher payables turnover ratio suggests that Mesa Laboratories is paying off its suppliers more quickly, which can be a positive sign of effective cash management and strong supplier relationships. Conversely, a lower payables turnover ratio may signal that the company is taking longer to settle its payables, potentially straining relationships with suppliers.

Overall, Mesa Laboratories Inc's payables turnover ratio has been within a reasonable range over the past five years, indicating a consistent approach to managing its accounts payable obligations.