Mesa Laboratories Inc (MLAB)

Working capital 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 current assets	US$ in thousands	109,352	118,975	124,318	303,749	122,792
Total current liabilities	US$ in thousands	44,312	43,359	48,055	32,583	26,008
Working capital turnover		3.32	2.90	2.42	0.49	1.22

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $216,187K ÷ ($109,352K – $44,312K)
= 3.32

Mesa Laboratories Inc's working capital turnover has exhibited a positive trend over the past five years, reflecting the company's efficiency in utilizing its working capital to generate revenue. The ratio has improved steadily from 1.22 in 2020 to 3.32 in 2024, indicating a more effective management of its working capital resources. This suggests that Mesa Laboratories has been able to generate more sales revenue in relation to its working capital in recent years, potentially leading to higher profitability. The consistent increase in working capital turnover is a positive sign of the company's operational efficiency and its ability to effectively manage its current assets and liabilities to drive business growth.