Mesa Laboratories Inc (MLAB)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 3.47 | 3.18 | 2.94 | 2.71 | 2.31 | 2.57 | 2.41 | 2.46 | 2.57 | 3.26 | 3.04 | 3.06 | 2.73 | 4.30 | 4.13 | 4.23 | 4.15 | 4.49 | 4.08 |
| Receivables turnover | 5.74 | 6.15 | 5.68 | 6.29 | 5.54 | 5.91 | 5.88 | 6.16 | 5.15 | 5.25 | 5.33 | 4.78 | 4.47 | 4.38 | 6.31 | 6.75 | 5.63 | 6.38 | 6.88 | 6.77 |
| 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 |
| Working capital turnover | — | — | — | 4.32 | 3.32 | 2.87 | 2.75 | 2.90 | 2.90 | 3.06 | 2.98 | 2.38 | 2.42 | 2.20 | 0.49 | 0.49 | 0.50 | 0.49 | 0.49 | 0.49 |
Inventory Turnover:
Mesa Laboratories Inc's inventory turnover has shown fluctuations over the years. The ratio was relatively stable between 4 and 4.5 from June 2020 to September 2021, indicating efficient management of inventory. However, there was a notable decline in inventory turnover from December 2021 to September 2024, dropping to as low as 2.31 in December 2023. This suggests a potential issue with inventory management efficiency during this period.
Receivables Turnover:
The receivables turnover for Mesa Laboratories Inc also exhibited fluctuations. The ratio was relatively consistent, hovering between 4 and 6 from June 2020 to June 2024. However, there was a significant decrease in receivables turnover in December 2024. This decline may indicate potential challenges in collecting receivables efficiently during that period.
Payables Turnover:
The payables turnover for the company showed variability as well. There was a general downward trend in payables turnover from June 2020 to December 2024, with periodic fluctuations. The ratio reached a peak of 28.67 in September 2020 but dropped to 15.80 in September 2024. This decrease in payables turnover suggests potential changes in the company's payment policies or timing during this period.
Working Capital Turnover:
Mesa Laboratories Inc's working capital turnover has shown an increasing trend from December 2021 to June 2024, indicating more efficient utilization of working capital during this period. The ratio increased from 2.20 in December 2021 to 4.32 in June 2024. However, the data is not available for the working capital turnover from September 2024 to March 2025, so a complete trend analysis is not possible for that period.
Average number of days
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 105.14 | 114.73 | 124.29 | 134.89 | 158.23 | 142.14 | 151.38 | 148.08 | 141.93 | 112.08 | 120.14 | 119.36 | 133.80 | 84.80 | 88.44 | 86.27 | 87.99 | 81.38 | 89.55 |
| Days of sales outstanding (DSO) | days | 63.57 | 59.33 | 64.30 | 58.03 | 65.94 | 61.77 | 62.07 | 59.25 | 70.89 | 69.59 | 68.50 | 76.41 | 81.63 | 83.29 | 57.82 | 54.07 | 64.82 | 57.23 | 53.07 | 53.93 |
| Number of days of payables | days | — | 15.28 | 23.10 | 22.14 | 24.94 | 20.03 | 20.79 | 23.79 | 26.22 | 26.45 | 30.93 | 33.78 | 38.31 | 44.15 | 31.23 | 29.51 | 34.52 | 27.58 | 12.73 | 19.52 |
Mesa Laboratories Inc's activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying suppliers.
1. Days of Inventory on Hand (DOH): The trend in DOH indicates the number of days it takes for the company to sell its inventory. Mesa Laboratories Inc's DOH has fluctuated over the years, ranging from 105.14 days at the end of December 2024 to 88.44 days at the end of June 2021. The increase in DOH from 2022 to 2024 suggests the company may be facing challenges in managing its inventory efficiently.
2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect payment from its customers. Mesa Laboratories Inc's DSO has varied, with the highest level at 83.29 days by the end of December 2021. The decreasing trend from 2022 to 2024 suggests the company may have improved its collection practices, although a slight increase was observed at the end of March 2025.
3. Number of Days of Payables: This ratio indicates how long the company takes to pay its suppliers. Mesa Laboratories Inc's days of payables ranged from 15.28 days at the end of December 2024 to 44.15 days at the end of December 2021. The decrease in payables days from 2021 to 2024 implies the company may be negotiating more favorable credit terms with suppliers or managing its cash flow more efficiently.
Overall, Mesa Laboratories Inc should focus on optimizing its inventory management processes, maintaining a balance between collecting receivables promptly and managing payables effectively to improve its overall liquidity and working capital management.
Long-term
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | — | 7.84 | 7.78 | 7.87 | 7.89 | 7.14 | 6.44 | 5.42 | 6.38 | 6.31 | 6.09 | 5.84 | 5.72 | 5.57 |
| Total asset turnover | — | 0.54 | 0.50 | 0.51 | 0.48 | 0.29 | 0.34 | 0.34 | 0.33 | 0.34 | 0.34 | 0.29 | 0.26 | 0.23 | 0.23 | 0.23 | 0.22 | 0.21 | 0.22 | 0.21 |
Mesa Laboratories Inc's fixed asset turnover ratio has shown a consistent upward trend over the years, indicating an improvement in the efficiency of utilizing fixed assets to generate sales. The ratio increased from 5.57 in June 2020 to 7.84 in June 2023. However, there was a slight decrease to 7.78 by the end of March 2024. This suggests that Mesa Laboratories has been effectively utilizing its fixed assets to generate revenue during this period.
In contrast, the total asset turnover ratio experienced fluctuations over the years. The ratio started at 0.21 in June 2020, increased to 0.34 by September 2022, and then declined to 0.29 by December 2023. However, there was a notable spike in the ratio to 0.54 by December 2024, indicating a significant increase in sales generated per dollar of total assets during that period.
Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest that Mesa Laboratories Inc has been efficiently managing its assets to generate sales. The company has shown improvements in asset utilization, particularly in using fixed assets to drive revenue growth and also in generating more sales relative to its total assets in recent years.