Mesa Laboratories Inc (MLAB)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Revenue (ttm)	US$ in thousands	237,747	228,380	223,712	216,187	212,874	213,688	219,272	219,080	222,368	222,777	199,868	184,335	163,420	142,896	138,916	133,937	130,181	127,664	121,340	117,687
Total current assets	US$ in thousands	110,845	107,978	106,690	109,352	118,355	117,662	114,808	118,975	114,185	116,260	128,127	124,318	120,995	319,404	315,311	303,009	295,275	280,125	269,756	122,792
Total current liabilities	US$ in thousands	155,878	153,230	54,865	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
Working capital turnover		—	—	4.32	3.32	2.87	2.75	2.90	2.90	3.06	2.98	2.38	2.42	2.20	0.49	0.49	0.50	0.49	0.49	0.49	1.22

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $237,747K ÷ ($110,845K – $155,878K)
= —

The working capital turnover ratio for Mesa Laboratories Inc has shown fluctuations over the past few years. The ratio stood at 1.22 as of March 31, 2020, indicating that the company converted its working capital 1.22 times during that period. Subsequently, the ratio decreased to 0.49 as of June 30, 2020 and remained at that level for the next three quarters.

However, there was a significant improvement in the working capital turnover ratio starting from December 31, 2021, where it surged to 2.20. This upward trend continued into the next few quarters, reaching a peak of 4.32 as of June 30, 2024. This indicates that Mesa Laboratories significantly enhanced its efficiency in utilizing its working capital during this period.

It is important to note some missing data points for September 30, 2024, and December 31, 2024. Despite these, the overall trend suggests that the company has been able to improve its working capital turnover, reflecting potentially more effective management of its working capital components such as inventory, accounts receivable, and accounts payable. An increasing working capital turnover ratio generally signifies improved liquidity and operational efficiency for the company.