Mesa Laboratories Inc (MLAB)

Quick ratio

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 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 81,380
Short-term investments US$ in thousands — — 1,514 — 2,143 1,563 1,387 — 1,702 2,787 — — — — — — — — — —
Receivables US$ in thousands 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 21,132
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 26,008
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($30,956K + $—K + $38,647K) ÷ $155,878K
= 0.45

The quick ratio of Mesa Laboratories Inc has exhibited significant fluctuations over the period analyzed. Starting at a strong level of 3.94 in March 2020, the ratio increased substantially to 12.16 by June 2020, indicating a solid ability to cover its immediate liabilities with its most liquid assets. The ratio continued to rise, reaching a peak of 13.34 in September 2020, suggesting an even healthier liquidity position.

However, from December 2020 to June 2021, there was a slight decline in the quick ratio, yet it remained relatively high at around 8-9. Thereafter, the ratio fluctuated in a narrower range between 8.83 and 10.49 from March 2021 to September 2021.

In December 2021, there was a notable decrease in the quick ratio to 1.90, indicating a potential decrease in the company's ability to cover its current liabilities with its quick assets. The trend continued to decline, with the ratio falling to 1.50 by December 2023, signifying potential liquidity challenges.

In the last period reported in December 2024, the quick ratio plummeted to its lowest level of 0.45, illustrating a concerning liquidity position where the company may struggle to meet its short-term obligations using its most liquid assets. This sharp decline raises questions about Mesa Laboratories Inc's liquidity management and ability to meet short-term financial obligations.