Mesa Laboratories Inc (MLAB)

Liquidity ratios

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
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
Quick ratio 0.45 0.42 1.19 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
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 3.13

Mesa Laboratories Inc's liquidity ratios have shown fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 2, indicating a healthy liquidity position. However, there was a significant decline from 2022 to 2024, with the current ratio dropping to 0.71 by the end of December 2024.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrated a similar trend of decreasing from 2022 to 2024. The quick ratio fell to 0.45 by December 2024, indicating potential challenges in meeting short-term obligations without relying on inventory.

Lastly, the cash ratio, which assesses the company's ability to cover its current liabilities with its most liquid assets (cash and cash equivalents), followed a downward trend as well, reaching 0.20 by the end of December 2024. This suggests that Mesa Laboratories Inc may have limited capacity to meet its immediate obligations with cash on hand alone.

Overall, Mesa Laboratories Inc's liquidity ratios have shown a declining trend from 2022 to 2024, indicating potential liquidity challenges that could require management's attention to maintain a healthy financial position.

Additional liquidity measure

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
Cash conversion cycle days 149.19 155.93 160.18 175.89 199.97 183.42 186.84 192.75 185.07 149.65 162.76 162.68 172.93 111.38 112.99 116.57 117.63 121.72 123.96 140.42

The cash conversion cycle of Mesa Laboratories Inc has displayed fluctuations over the periods analyzed. The company's cash conversion cycle decreased from 140.42 days as of March 31, 2020, to 111.38 days as of September 30, 2021, indicating an improvement in managing its working capital. However, there was a notable increase to 199.97 days as of December 31, 2023, suggesting potential challenges in cash flow management during that period.

Subsequently, Mesa Laboratories Inc was able to reduce its cash conversion cycle to 149.19 days by December 31, 2024. Overall, the trend indicates some volatility in the efficiency of Mesa Laboratories Inc in converting its investments in raw materials and other inputs into cash inflows from sales. Further examination and analysis of the company’s operational and financial strategies may provide insights into the reasons behind these fluctuations and opportunities for improvement in managing its cash conversion cycle.