Mesa Laboratories Inc (MLAB)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-269,951	4,596	3,872	8,890	4,381	4,470	69	829	7,519	13,440	10,986	9,946	10,327	4,241	4,763	5,139	7,858	9,390	13,965	11,514
Long-term debt	US$ in thousands	171,198	170,965	170,733	170,502	170,272	170,044	169,816	169,590	169,365	229,140	168,917	168,695	145,675	144,302	142,945	141,604	140,278	138,967	137,682	17,512
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
Return on total capital		-85.27%	0.80%	0.69%	1.59%	0.78%	0.80%	0.01%	0.15%	1.34%	2.15%	1.93%	1.75%	1.87%	0.76%	0.89%	0.98%	2.18%	2.51%	3.80%	8.43%

March 31, 2024 calculation

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

The return on total capital for Mesa Laboratories Inc has exhibited significant fluctuations over the periods provided. The return on total capital was negative at -85.27% as of March 31, 2024, indicating that the company had a substantial shortfall in generating returns relative to its total capital at that point.

There was a notable improvement in the return on total capital from the negative figure in March 2024 to positive levels in subsequent periods. The returns ranged from 0.69% to 2.18% in the quarters preceding March 31, 2024.

However, it is important to note that the return on total capital was quite volatile, with fluctuations observed in various quarters. It reached a peak of 8.43% as of June 30, 2019, before tapering off in subsequent periods.

Overall, Mesa Laboratories Inc's return on total capital has shown variability, with periods of positive and negative returns. Further analysis and consideration of the company's financial performance and operational efficiency may be necessary to understand the factors driving these fluctuations in returns on total capital.