Mesa Laboratories Inc (MLAB)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Inventory turnover	2.54	2.31	2.57	2.41	2.46	1.87	2.41	2.15	2.09	2.73	4.30	2.03	4.20	4.11	4.43	4.02	4.69	2.54	6.13	6.07
Receivables turnover	5.54	5.91	5.88	6.16	5.15	3.86	3.92	3.37	3.04	4.38	6.31	6.75	5.63	6.38	6.88	6.77	5.57	5.64	8.58	8.05
Payables turnover	13.73	18.22	17.55	15.34	13.92	10.02	8.73	7.66	6.52	8.27	11.69	12.37	10.49	13.10	28.33	18.44	15.37	12.64	17.95	13.52
Working capital turnover	3.32	2.87	2.75	2.90	2.90	2.25	2.19	1.68	1.65	2.20	0.49	0.49	0.49	0.49	0.49	0.49	1.22	1.15	0.41	8.34

The activity ratios of Mesa Laboratories Inc provide insight into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory turnover: This ratio indicates how many times during a period, on average, the company sells and replaces its inventory. Mesa Laboratories' inventory turnover has fluctuated over the periods, ranging from 1.87 to 6.13 times. Typically, a higher turnover is preferred as it suggests better inventory management.

2. Receivables turnover: This ratio measures how quickly the company collects payments from its customers. Mesa Laboratories' receivables turnover has varied between 3.04 and 8.58 times, showing some inconsistency. A higher turnover implies efficient collection practices.

3. Payables turnover: This ratio reflects how quickly the company pays its suppliers. Mesa Laboratories' payables turnover has ranged from 6.52 to 28.33, indicating that the company pays its suppliers at different rates. A higher turnover suggests better cash management.

4. Working capital turnover: This ratio shows how efficiently the company utilizes its working capital to generate sales. Mesa Laboratories' working capital turnover varied between 0.41 and 8.34, displaying significant fluctuations. A higher turnover indicates effective utilization of working capital.

Overall, Mesa Laboratories Inc's activity ratios reveal varying levels of efficiency in managing inventory, receivables, payables, and working capital over the periods analyzed. Further analysis and comparison with industry benchmarks may provide additional insight into the company's operations and financial performance.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Days of inventory on hand (DOH)	days	143.80	158.23	142.14	151.38	148.08	195.48	151.52	169.47	174.47	133.80	84.80	179.51	86.95	88.88	82.35	90.82	77.88	143.64	59.54	60.13
Days of sales outstanding (DSO)	days	65.94	61.77	62.07	59.25	70.89	94.65	93.11	108.32	119.94	83.29	57.82	54.07	64.82	57.23	53.07	53.93	65.54	64.76	42.53	45.33
Number of days of payables	days	26.59	20.03	20.79	23.79	26.22	36.43	41.82	47.65	55.99	44.15	31.23	29.51	34.79	27.86	12.88	19.80	23.74	28.87	20.34	27.00

The activity ratios of Mesa Laboratories Inc provide insights into the efficiency of the company's operations in managing inventory, collecting receivables, and paying payables.

1. Days of Inventory on Hand (DOH):
- Mesa Laboratories Inc had a fluctuating trend in the days of inventory on hand over the past quarters, with higher numbers indicating excess inventory levels. The company experienced a significant increase in DOH in Q4 2022 and Q1 2023 but managed to reduce it gradually in subsequent quarters. This reduction suggests improved inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding also fluctuated throughout the periods, indicating variations in the company's ability to collect receivables. Mesa Laboratories Inc showed a decreasing trend in DSO from Q4 2022 to Q2 2023, which suggests a more efficient collection process. However, there was an increase in Q3 and Q4 2023, signifying a potential delay in collecting payments.

3. Number of Days of Payables:
- The number of days of payables reflects Mesa Laboratories Inc's payment practices to its suppliers. The company had a consistent trend of paying its payables within a relatively short period. However, there was an increase in the number of days of payables in Q1 and Q2 2022, indicating a shift towards a longer payment cycle, which then decreased in subsequent quarters.

Overall, Mesa Laboratories Inc's activity ratios demonstrate improvements in inventory management and collection efficiency, with relatively stable payment practices to suppliers. Monitoring these ratios can help identify areas where the company can further enhance its operational efficiency and cash flow management.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Fixed asset turnover	6.81	6.70	7.48	7.84	7.78	5.78	5.81	5.03	4.38	5.42	6.38	6.33	6.09	5.84	5.72	5.57	5.33	4.92	4.83	4.74
Total asset turnover	0.48	0.29	0.34	0.34	0.33	0.25	0.25	0.21	0.18	0.23	0.23	0.23	0.22	0.21	0.22	0.21	0.29	0.26	0.27	0.65

Mesa Laboratories Inc has shown consistency in its fixed asset turnover ratio over the quarters, with a gradual increase from 4.74 in Q2 2019 to 7.84 in Q1 2024. This indicates the company's ability to generate sales from its fixed assets efficiently.

In contrast, the total asset turnover ratio fluctuated during the period under review, ranging from a low of 0.18 in Q1 2022 to a high of 0.48 in Q1 2024. This suggests that Mesa Laboratories Inc has been less effective in generating sales relative to its total assets, but improvements have been made in recent quarters.

Overall, while Mesa Laboratories Inc has demonstrated strong utilization of its fixed assets to generate revenue consistently, there is room for enhancement in utilizing its total assets more efficiently to drive sales and improve overall performance.