Mesa Laboratories Inc (MLAB)

Working capital 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
Total current assets	US$ in thousands	109,352	118,355	117,662	114,808	118,975	114,185	116,260	128,127	124,318	120,995	319,404	315,311	303,749	295,275	280,125	269,756	122,792	120,703	270,728	33,824
Total current liabilities	US$ in thousands	44,312	44,183	39,816	39,126	43,359	41,617	41,506	44,127	48,055	46,775	28,690	33,448	32,583	27,750	19,533	20,475	26,008	25,245	16,741	21,323
Working capital turnover		3.32	2.87	2.75	2.90	2.90	2.25	2.19	1.68	1.65	2.20	0.49	0.49	0.49	0.49	0.49	0.49	1.22	1.15	0.41	8.34

March 31, 2024 calculation

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

Mesa Laboratories Inc's working capital turnover has fluctuated over the past few quarters, ranging from a low of 0.41 to a high of 3.32. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.

A higher working capital turnover ratio indicates that Mesa Laboratories Inc is using its working capital more efficiently to generate sales. The company's working capital turnover ratio has shown an increasing trend in recent quarters, which is generally a positive sign as it suggests improved efficiency in utilizing the company's current assets to drive sales.

However, it is essential to note the significant fluctuations in the working capital turnover ratio, particularly the very low ratios observed in some quarters, such as 0.49 and 0.41. These low ratios may indicate potential inefficiencies in the company's management of working capital, which could impact profitability and liquidity.

Overall, Mesa Laboratories Inc should continue to monitor and analyze its working capital turnover ratio to ensure efficient use of working capital, maintain liquidity, and support sustainable business growth.