Mesa Laboratories Inc (MLAB)

Current 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
Total current assets	US$ in thousands	109,352	118,355	117,662	114,808	118,975	114,185	116,260	128,127	124,318	120,995	319,404	315,311	303,749	295,275	280,125	269,756	122,792	120,703	270,728	33,824
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
Current ratio		2.47	2.68	2.96	2.93	2.74	2.74	2.80	2.90	2.59	2.59	11.13	9.43	9.32	10.64	14.34	13.17	4.72	4.78	16.17	1.59

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $109,352K ÷ $44,312K
= 2.47

The current ratio of Mesa Laboratories Inc has shown fluctuations over the past several quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong short-term financial position.

In the most recent quarter, as of March 31, 2024, Mesa Laboratories Inc had a current ratio of 2.47, indicating that it had $2.47 in current assets for every dollar of current liabilities. This ratio has decreased compared to the prior quarter, possibly indicating a reduction in liquidity or an increase in short-term liabilities relative to current assets.

Looking at the trend over the past few quarters, the company's current ratio has generally been above 2, demonstrating a healthy liquidity position. However, there was a significant spike in the current ratio in the third quarter of 2021 and the fourth quarter of 2021, with ratios of 11.13 and 9.43, respectively. These unusually high ratios may warrant further investigation to understand the reasons behind such fluctuations.

Overall, Mesa Laboratories Inc's current ratio has displayed variability, but it has generally remained at levels indicating a strong ability to cover short-term obligations with current assets. It is important to continue monitoring the current ratio trends in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health and liquidity position.