Mesa Laboratories Inc (MLAB)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash	US$ in thousands	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	73,979	245,443	7,315
Short-term investments	US$ in thousands	—	2,143	1,563	1,387	—	1,702	2,787	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	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	19,503	12,228	12,952
Total current liabilities	US$ in thousands	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	25,245	16,741	21,323
Quick ratio		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	3.70	15.39	0.95

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 of Mesa Laboratories Inc has shown fluctuations over the periods in review. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its short-term liabilities.

Looking at the data provided, the quick ratio has been relatively stable, with values ranging between 1.50 and 1.94 in recent quarters. However, there are instances of significant fluctuations, such as in the third quarter of 2021 when the quick ratio spiked to an unusually high level of 10.49, indicating a significant increase in liquid assets relative to short-term liabilities.

In contrast, the quick ratio dropped significantly in the first quarter of 2020 to 0.95, suggesting a potential liquidity issue or a decrease in liquid assets to cover short-term obligations. This significant decline may warrant further investigation into the company's liquidity management during that period.

Overall, Mesa Laboratories Inc's quick ratio indicates a generally healthy liquidity position, with most values comfortably above the threshold of 1. It is essential for the company to monitor and manage its liquidity effectively to ensure it can meet its short-term obligations when they come due.