Mesa Laboratories Inc (MLAB)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	73,979	245,443	7,315
Short-term investments	US$ in thousands	—	2,143	1,563	1,387	—	1,702	2,787	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		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	2.93	14.66	0.34

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 fluctuated over the periods, ranging from as low as 0.34 to as high as 14.66. A higher cash ratio indicates a company has a greater ability to cover its short-term obligations using its cash and cash equivalents.

Between December 2019 and September 2021, the cash ratio remained relatively stable, suggesting Mesa Laboratories Inc had a consistent ability to meet its short-term obligations with cash on hand. However, from September 2021 to March 2022, there was a significant increase in the cash ratio, reaching as high as 9.70, indicating a substantial increase in cash and cash equivalents relative to short-term obligations during this period.

Subsequently, there was a sharp decline in the cash ratio in the following two quarters before stabilizing around a ratio of 0.64 to 0.76 from March 2023 to March 2024. This suggests that the company's cash position relative to its short-term obligations decreased during this period, possibly due to changes in cash management or increased short-term liabilities.

Overall, the cash ratio trend of Mesa Laboratories Inc highlights fluctuations in its ability to cover short-term obligations with available cash and cash equivalents. It is important for the company to maintain a healthy cash ratio to ensure liquidity and financial stability.