Mesa Laboratories Inc (MLAB)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-269,951	4,381	7,459	10,327	7,923
Long-term debt	US$ in thousands	171,198	170,272	169,365	145,675	140,278
Total stockholders’ equity	US$ in thousands	145,393	393,480	393,801	406,227	220,013
Return on total capital		-85.27%	0.78%	1.32%	1.87%	2.20%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-269,951K ÷ ($171,198K + $145,393K)
= -85.27%

The return on total capital for Mesa Laboratories Inc has shown a declining trend over the past five years. The ratio was notably negative at -85.27% as of March 31, 2024, indicating that the company's capital investment generated a significant loss during that period. This could be a concerning sign for investors and stakeholders as it suggests that the company's capital deployment may not have been optimal and may not have been generating satisfactory returns.

Comparing this to the previous years, the return on total capital was positive but also relatively low, ranging from 0.78% in 2023 to 2.20% in 2020. This indicates that Mesa Laboratories Inc has struggled to generate significant returns on the total capital employed in its operations over the years.

Overall, the declining trend in the return on total capital for Mesa Laboratories Inc suggests that the company may need to reassess its capital allocation strategies and operational efficiencies to improve profitability and enhance shareholder value.