Mesa Laboratories Inc (MLAB)

Payables 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
Payables US$ in thousands 4,087 5,988 5,659 6,041 4,554 4,810 5,588 6,134 6,288 7,738 7,557 7,897 7,827 4,463 4,045 4,473 3,751 1,852 2,812 3,408
Payables turnover 23.89 15.80 16.48 14.64 18.22 17.55 15.34 13.92 13.80 11.80 10.80 9.53 8.27 11.69 12.37 10.57 13.23 28.67 18.70 15.48

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $97,625K ÷ $4,087K
= 23.89

The payables turnover ratio indicates how efficiently a company is managing its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance during a period. A higher payables turnover ratio generally reflects a shorter time taken by the company to pay its suppliers.

Analyzing the payables turnover data for Mesa Laboratories Inc over the past few years, we observe fluctuations in the ratio. The ratio ranged from a high of 28.67 on September 30, 2020, to a low of 8.27 on December 31, 2021. This illustrates varying levels of efficiency in managing payables during different periods.

It is notable that the payables turnover ratio decreased significantly from September 2020 through December 2021, indicating a potential delay in paying suppliers during this period. However, from March 2022 onwards, the ratio gradually increased, suggesting an improvement in managing accounts payable.

The company's payables turnover ratio reached a peak of 23.89 on December 31, 2024, indicating a more efficient management of payables compared to previous periods. Overall, while there have been fluctuations in the payables turnover ratio, Mesa Laboratories Inc has shown a trend of improving efficiency in managing its accounts payable over the years analyzed.