Mesa Laboratories Inc (MLAB)

Liquidity ratios

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
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
Quick ratio 1.52 1.50 1.85 1.77 1.74 1.69 1.85 1.94 1.88 1.90 10.49 8.86 8.83 9.88 13.34 12.16 3.94 3.70 15.39 0.95
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

Over the past several quarters, Mesa Laboratories Inc has demonstrated consistent liquidity strength, as indicated by its current ratio, quick ratio, and cash ratio.

The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged between 2.47 and 2.96 during the most recent quarters. This suggests that Mesa Laboratories has ample current assets to cover its current liabilities, reflecting a healthy liquidity position.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown a relatively stable trend ranging from 1.50 to 1.94. This indicates that the company can cover its short-term obligations even without relying on inventory liquidation, further reinforcing its liquidity position.

The cash ratio, which specifically assesses the company's ability to cover current liabilities with its cash and cash equivalents, has also been consistently strong, with values between 0.64 and 1.11. Mesa Laboratories' ability to cover a significant portion of its current liabilities with cash highlights its strong liquidity position and ability to navigate unforeseen financial challenges.

Overall, Mesa Laboratories Inc's liquidity ratios indicate a solid financial footing, with sufficient short-term resources to meet its obligations. This liquidity strength provides the company with flexibility and resilience in managing its operations and potential economic uncertainties.

Additional liquidity measure

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 conversion cycle days 183.15 199.97 183.42 186.84 192.75 253.70 202.81 230.13 238.41 172.93 111.38 204.07 116.98 118.24 122.54 124.96 119.67 179.52 81.73 78.46

The cash conversion cycle of Mesa Laboratories Inc fluctuated over the periods analyzed, ranging from 78.46 days to 253.70 days. The cash conversion cycle represents the company's ability to convert its resources into cash through its operational activities. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital.

In the most recent period, as of March 31, 2024, Mesa Laboratories Inc had a cash conversion cycle of 183.15 days, which was an improvement compared to the previous quarter where it was 199.97 days. Despite the decrease, the company still exhibits a relatively long cash conversion cycle, suggesting that it takes several months for the company to convert its investments in inventory into cash from sales.

On the other hand, Mesa Laboratories Inc's lowest cash conversion cycle of 78.46 days, reported in the third quarter of 2019, indicates a high level of efficiency in managing its working capital during that period. This shorter cycle suggests that the company was able to efficiently manage its inventory, accounts receivable, and accounts payable, leading to a quicker conversion of resources into cash.

Overall, fluctuations in the cash conversion cycle of Mesa Laboratories Inc over time may be influenced by factors such as changes in inventory management, sales trends, and payment terms with suppliers and customers. Further analysis of the company's working capital management practices and operational efficiency would provide more insights into the dynamics affecting its cash conversion cycle.