Mesa Laboratories Inc (MLAB)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	216,187	212,874	213,688	219,272	219,080	163,489	163,898	140,989	125,456	163,420	142,896	138,916	133,937	130,181	127,664	121,340	117,687	109,925	104,952	104,281
Receivables	US$ in thousands	39,055	36,023	36,340	35,595	42,551	42,395	41,809	41,840	41,224	37,289	22,636	20,578	23,787	20,410	18,563	17,929	21,132	19,503	12,228	12,952
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

March 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $216,187K ÷ $39,055K
= 5.54

The receivables turnover ratio for Mesa Laboratories Inc has shown some fluctuation over the past few quarters. The ratio measures how efficiently the company is collecting on its accounts receivables.

Looking at the trend, there was a consistent improvement in receivables turnover from Sep 2020 to Mar 2022, indicating that Mesa Laboratories was collecting its receivables at a faster rate during that period. This could be a positive sign of effective credit management and timely collections.

However, from Jun 2022 to Dec 2023, there was a decline in the receivables turnover ratio, which suggests that Mesa Laboratories may be taking longer to collect on its accounts receivables during this period. A lower ratio could indicate potential issues with credit policies or a slowdown in collection efforts.

Overall, Mesa Laboratories Inc should monitor its receivables turnover closely to ensure that it maintains an efficient collections process and manages credit effectively to optimize cash flow and liquidity.