Mesa Laboratories Inc (MLAB)

Cash ratio

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
Cash and cash equivalents US$ in thousands 30,956 24,337 28,472 28,214 28,224 35,617 32,376 32,910 26,101 32,377 43,747 49,346 51,706 278,294 275,710 263,865 253,731 241,924 230,951 81,380
Short-term investments US$ in thousands — — 1,514 — 2,143 1,563 1,387 — 1,702 2,787 — — — — — — — — — —
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
Cash ratio 0.20 0.16 0.55 0.64 0.69 0.93 0.86 0.76 0.67 0.85 0.99 1.03 1.11 9.70 8.24 8.10 9.14 12.39 11.28 3.13

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($30,956K + $—K) ÷ $155,878K
= 0.20

The cash ratio of Mesa Laboratories Inc has been fluctuating over the period analyzed. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

Between March 31, 2020, and September 30, 2021, the cash ratio consistently increased, indicating an improving ability to cover short-term obligations with cash on hand. However, by December 31, 2021, the ratio dropped significantly to 1.11, suggesting a potential decrease in liquidity.

From March 31, 2022, to June 30, 2024, the cash ratio continued to decline, reaching as low as 0.16 by September 30, 2024. This downward trend may raise concerns about the company's liquidity position and its ability to meet short-term liabilities solely through its cash reserves.

Overall, a decreasing cash ratio implies a decreasing ability to cover short-term obligations with cash on hand, which could potentially indicate liquidity challenges for Mesa Laboratories Inc if the trend continues.