Mesa Laboratories Inc (MLAB)

Cash ratio

		Mar 31, 2025	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
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
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
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

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($—K + $—K) ÷ $—K
= —

The cash ratio of Mesa Laboratories Inc has exhibited some fluctuations over the period from June 30, 2020, to March 31, 2025. The cash ratio is a liquidity ratio that indicates a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

From June 30, 2020, to September 30, 2021, the cash ratio showed a generally positive trend, ranging from 11.28 to 9.70, indicating a healthy level of cash reserves relative to short-term obligations. However, from December 31, 2021, to December 31, 2024, the cash ratio declined significantly, reaching as low as 0.16 by September 30, 2024.

The declining trend in the cash ratio suggests potential challenges in meeting short-term obligations solely from cash reserves. It may indicate a need for the company to improve its liquidity position, possibly by generating more cash flow from operations, managing working capital more efficiently, or evaluating its investment and financing activities.

The absence of data for March 31, 2025, makes it challenging to provide a conclusive analysis of the current cash ratio. However, based on the historical data, Mesa Laboratories Inc may need to closely monitor and manage its cash position to ensure it can meet its short-term financial commitments effectively.