Mesa Laboratories Inc (MLAB)

Short-term

Turnover ratios

Mesa Laboratories Inc's activity ratios provide insights into how efficiently the company manages its resources to generate sales.

1. Inventory Turnover: This ratio indicates the number of times inventory is sold and replaced during a specific period. Mesa Laboratories Inc's inventory turnover has shown fluctuations over time, with a general trend of increase until reaching a peak in the third quarter of 2021, followed by a decline thereafter. The company's inventory turnover ranged from 2.31 to 4.49, suggesting varying levels of efficiency in managing its inventory.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly the company collects cash from its credit sales. Mesa Laboratories Inc's receivables turnover ratio exhibited fluctuations, with values fluctuating between 4.38 and 6.88. The company showed a generally improving trend in collecting receivables efficiently during the analyzed periods.

3. Payables Turnover: The payables turnover ratio assesses how effectively Mesa Laboratories Inc pays off its suppliers. The ratio ranged from 8.27 to 28.67, indicating the company's ability to manage its trade payables efficiently. The trend shows variability, with periods of both decreased and increased turnover.

4. Working Capital Turnover: This ratio measures the efficiency of the company in using its working capital to generate sales revenue. Mesa Laboratories Inc's working capital turnover ratio varied between 0.49 and 4.32, with a noticeable increase in the latter half of the analysis period. The rising trend indicates improved efficiency in utilizing working capital to drive revenue growth.

In conclusion, Mesa Laboratories Inc's activity ratios demonstrate varying levels of efficiency in managing its resources to drive sales and cash flow. The company has shown improvements in certain areas, such as receivables turnover and working capital turnover, while also facing challenges in maintaining consistent inventory turnover and payables turnover. Continued monitoring and analysis of these ratios can help evaluate the company's operational performance and efficiency over time.

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Average number of days

The analysis of Mesa Laboratories Inc activity ratios indicates fluctuations over the years in terms of efficiency in managing its inventory, collecting receivables, and paying its payables.

1. Days of Inventory on Hand (DOH):
- The company's DOH shows an increasing trend from March 2020 to December 2024, with some fluctuations in between. This indicates that Mesa Laboratories is holding onto its inventory for longer periods, which may tie up more capital and potentially lead to higher carrying costs.

2. Days of Sales Outstanding (DSO):
- The DSO ratio has shown variations over the period, with peaks and valleys noted from March 2020 to December 2024. The increasing trend in DSO suggests that the company is taking longer to collect its receivables, which may pose challenges in managing liquidity and cash flow.

3. Number of Days of Payables:
- Mesa Laboratories has also experienced fluctuations in the number of days it takes to pay its payables from March 2020 to December 2024. The decreasing trend in payables days indicates that the company is now paying its obligations more quickly, which could indicate potential strain on cash flow management.

In conclusion, the activity ratios of Mesa Laboratories Inc reflect variations in inventory management, accounts receivable collection, and accounts payable turnover over the years. It is essential for the company to closely monitor and optimize these ratios to ensure efficient working capital management and sustainable business operations.

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Long-term

Mesa Laboratories Inc's fixed asset turnover ratio has shown a consistent increasing trend from March 2020 to June 2023, reaching a peak of 7.84 times. This indicates that Mesa Laboratories is generating significant sales in relation to its fixed assets. However, the ratio declined in December 2023 and remained unreported for subsequent periods.

In contrast, the total asset turnover ratio has fluctuated over the same period but generally increased. From a low of 0.21 in June 2020, the ratio climbed to 0.51 by June 2024. This suggests that Mesa Laboratories has become more efficient in utilizing its total assets to generate revenue.

Overall, the long-term activity ratios demonstrate Mesa Laboratories Inc's ability to efficiently generate sales with its fixed assets and total assets over the analyzed period, with a slight decline in the fixed asset turnover ratio towards the end of the timeline.