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