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.


Peer comparison

Mar 31, 2024