Mesa Laboratories Inc (MLAB)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-254,246	948	-717	1,819	930	319	-2,192	222	3,655	7,575	5,093	4,052	3,274	17,995	17,907	18,290	21,670	18,643	24,131	22,063
Total stockholders’ equity	US$ in thousands	145,393	402,961	387,759	387,719	393,480	387,205	374,236	380,431	393,801	396,329	399,417	399,003	406,227	412,795	392,412	382,234	220,013	235,260	230,246	119,047
ROE		-174.87%	0.24%	-0.18%	0.47%	0.24%	0.08%	-0.59%	0.06%	0.93%	1.91%	1.28%	1.02%	0.81%	4.36%	4.56%	4.79%	9.85%	7.92%	10.48%	18.53%

March 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-254,246K ÷ $145,393K
= -174.87%

Mesa Laboratories Inc's return on equity (ROE) has exhibited significant fluctuation over the past several quarters. The ROE for the most recent quarter, as of March 31, 2024, stands at -174.87%, indicating a substantial negative return on equity. This sharp decline suggests that the company's net income may not be generating enough profits to cover shareholder equity, possibly resulting from operational inefficiencies or financial challenges.

The ROE figures for the preceding quarters also show variability, with values ranging from negative to positive. The ROE was marginally positive in the previous quarter (Dec 31, 2023) at 0.24%, followed by negative returns in the two preceding quarters. This alternating pattern of positive and negative ROE values indicates an inconsistent performance in generating earnings relative to shareholder equity.

Looking at historical data, Mesa Laboratories Inc's ROE has experienced periods of stronger performance in generating returns for shareholders. For instance, the company achieved ROE figures above 10% in several quarters from December 2019 to March 2021, reaching a peak of 18.53% in September 2019. These higher ROE values indicate that the company was more efficient in utilizing shareholder equity to generate profits during those periods.

In summary, Mesa Laboratories Inc's ROE has been volatile, with recent quarters showing negative returns, suggesting challenges in profitability and efficiency. The company may need to assess its financial strategies and operational performance to improve its ROE and ensure sustainable returns for its shareholders in the future.