Mesa Laboratories Inc (MLAB)

Quick ratio

Mar 31, 2025 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
Cash US$ in thousands — 30,956 24,337 28,472 28,214 28,224 35,617 32,376 32,910 26,101 32,377 43,747 49,346 51,706 278,294 275,710 263,865 253,731 241,924 230,951
Short-term investments US$ in thousands — — — 1,514 — 2,143 1,563 1,387 — 1,702 2,787 — — — — — — — — —
Receivables US$ in thousands 41,970 38,647 40,234 35,568 39,055 36,023 36,340 35,595 42,551 42,395 41,809 41,840 41,224 37,289 22,636 20,578 23,787 20,410 18,563 17,929
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
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

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($—K + $—K + $41,970K) ÷ $—K
= —

The Quick Ratio of Mesa Laboratories Inc has shown fluctuations over the period from June 30, 2020, to March 31, 2025. Initially, the quick ratio was quite high, indicating the company had a significant amount of liquid assets relative to its current liabilities. However, over time, the quick ratio gradually declined, reaching a low point of 0.42 as of September 30, 2024. This significant drop suggests that Mesa Laboratories may have faced challenges in meeting its short-term obligations with its readily available liquid assets during that period.

Having a quick ratio below 1 indicates that the company may have had difficulty covering its short-term liabilities without relying on selling inventory or obtaining external financing. The quick ratio being below 1 for several periods may raise concerns about the company's liquidity position and its ability to manage short-term financial obligations efficiently.

It is important for Mesa Laboratories Inc to closely monitor its quick ratio and take appropriate measures to ensure it maintains a healthy level of liquidity to meet its short-term financial commitments in a timely manner.