Mesa Laboratories Inc (MLAB)

Current 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
Total current assets	US$ in thousands	110,845	107,978	106,690	109,352	118,355	117,662	114,808	118,975	114,185	116,260	128,127	124,318	120,995	319,404	315,311	303,009	295,275	280,125	269,756	122,792
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
Current ratio		0.71	0.70	1.94	2.47	2.68	2.96	2.93	2.74	2.74	2.80	2.90	2.59	2.59	11.13	9.43	9.30	10.64	14.34	13.17	4.72

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $110,845K ÷ $155,878K
= 0.71

The current ratio of Mesa Laboratories Inc has shown significant fluctuations over the monitored periods. Starting at a high of 4.72 in March 2020, the ratio increased sharply to 13.17 by June 2020, indicating a robust liquidity position. This was further enhanced to 14.34 in September 2020 and remained relatively high at 10.64 by December 2020.

However, from March 2021 onwards, there was a declining trend in the current ratio, dropping to 2.59 by December 2021. Despite a slight increase to 2.90 by June 2022, the ratio continued to decrease over successive quarters, hitting a low of 0.70 by September 2024 before bouncing back slightly to 0.71 by December 2024.

The declining trend in the current ratio suggests potential liquidity challenges for Mesa Laboratories Inc in meeting its short-term obligations. It may indicate difficulties in converting current assets into cash to cover current liabilities efficiently. The company may need to reassess its liquidity management strategies to ensure financial stability and sound working capital management in the future.