Mesa Laboratories Inc (MLAB)
Quick ratio
Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
---|---|---|---|---|---|---|
Cash | US$ in thousands | 28,214 | 32,910 | 49,346 | 263,865 | 81,380 |
Short-term investments | US$ in thousands | — | — | — | — | — |
Receivables | US$ in thousands | 39,055 | 42,551 | 41,224 | 23,787 | 21,132 |
Total current liabilities | US$ in thousands | 44,312 | 43,359 | 48,055 | 32,583 | 26,008 |
Quick ratio | 1.52 | 1.74 | 1.88 | 8.83 | 3.94 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($28,214K
+ $—K
+ $39,055K)
÷ $44,312K
= 1.52
The quick ratio, also known as the acid-test ratio, measures Mesa Laboratories Inc's ability to meet its short-term financial obligations using its quick assets. A higher quick ratio indicates a stronger liquidity position, as it suggests a company has an increased ability to cover its current liabilities with its most liquid assets.
Analyzing Mesa Laboratories Inc's quick ratio from March 31, 2020, to March 31, 2024, reveals a fluctuating trend. The quick ratio decreased from 3.94 in 2020 to 1.52 in 2024. This decline indicates a potential deterioration in the company's ability to cover its current liabilities with its quick assets.
It is important to note the sharp decrease in the quick ratio in 2021, dropping to 8.83. This unusually high quick ratio may be attributed to a significant increase in cash or highly liquid assets relative to current liabilities, potentially reflecting a temporary or abnormal financial situation during that period.
Overall, while Mesa Laboratories Inc's quick ratio has seen fluctuations over the years, the downward trend in recent periods may raise concerns about the company's liquidity position and its ability to meet short-term obligations with its quick assets. Further analysis and monitoring of the company's liquidity management would be prudent to assess its financial health accurately.
Peer comparison
Mar 31, 2024