Mesa Laboratories Inc (MLAB)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	28,214	32,910	49,346	263,865	81,380
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	44,312	43,359	48,055	32,583	26,008
Cash ratio		0.64	0.76	1.03	8.10	3.13

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($28,214K + $—K) ÷ $44,312K
= 0.64

The cash ratio of Mesa Laboratories Inc has shown a declining trend over the past five years, decreasing from 8.10 in 2021 to 0.64 in 2024. The cash ratio, which measures a company's ability to cover its short-term liabilities with its available cash and equivalents, has fluctuated significantly during this period.

In 2024, the cash ratio of 0.64 indicates that Mesa Laboratories Inc has $0.64 of cash and cash equivalents for every $1 of current liabilities, suggesting a lower liquidity position compared to the previous years. This decrease in the cash ratio may raise concerns about the company's ability to meet its short-term obligations with its current cash resources.

It is important for Mesa Laboratories Inc to closely monitor its cash position and manage its liquidity effectively to ensure financial stability and the ability to meet its short-term obligations in a timely manner. Additional analysis of the company's cash management practices and potential strategies to improve liquidity may be warranted to address the declining trend in the cash ratio.