Mesa Laboratories Inc (MLAB)

Return on total capital

		Mar 31, 2025	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	13,813	-259,631	-256,454	-263,704	-269,951	4,596	3,872	8,890	4,381	4,568	167	927	7,617	13,333	10,879	9,839	11,117	1,453	1,956	2,222
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	—	155,214	161,451	150,727	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
Return on total capital		—	-167.27%	-158.84%	-174.95%	-185.67%	1.14%	1.00%	2.29%	1.11%	1.18%	0.04%	0.24%	1.93%	3.36%	2.72%	2.47%	2.74%	0.35%	0.50%	0.58%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $13,813K ÷ ($—K + $—K)
= —

Mesa Laboratories Inc's return on total capital has fluctuated significantly over the period analyzed. The company's return on total capital was relatively low in the first quarters of the data set, ranging from 0.24% to 2.74%. However, there was a substantial decrease in return on total capital in the later quarters, with returns turning negative and reaching alarming levels as low as -185.67%.

The negative returns recorded in the last few quarters indicate that Mesa Laboratories Inc's capital investments may not be generating sufficient profits to cover the capital costs. This could suggest inefficiencies or challenges within the company's operations or financial management. Monitoring and improving the return on total capital is crucial for Mesa Laboratories Inc to ensure sustainable profitability and efficient use of its capital resources.