Mesa Laboratories Inc (MLAB)

Total asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	216,187	219,080	184,335	133,937	117,687
Total assets	US$ in thousands	446,796	661,832	707,369	601,475	409,108
Total asset turnover		0.48	0.33	0.26	0.22	0.29

March 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $216,187K ÷ $446,796K
= 0.48

Mesa Laboratories Inc's total asset turnover has exhibited a positive trend over the past five years. The ratio has increased from 0.29 in 2020 to 0.48 in 2024, indicating that the company has been able to generate more revenue relative to its total assets. A higher total asset turnover ratio suggests that the company is able to efficiently utilize its assets to generate sales.

The gradual improvement in total asset turnover signifies that Mesa Laboratories Inc has been effectively managing its assets to drive sales growth. This could be attributed to better operational efficiency, strategic investments, or effective utilization of resources. A rising total asset turnover ratio is generally seen as a positive sign of the company's operational performance and efficiency in generating revenue from its asset base.

Overall, Mesa Laboratories Inc's increasing total asset turnover ratio reflects the company's ability to generate more revenue per dollar of assets employed, indicating improved asset utilization and operational efficiency over the years. It suggests that the company is effectively leveraging its assets to drive sales and enhance overall financial performance.