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