Mesa Laboratories Inc (MLAB)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | 3.07 | 1.68 | 1.80 | 1.48 |
The solvency ratios of Mesa Laboratories Inc indicate a strong financial position with consistently low debt levels over the years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been reported as 0.00% from March 31, 2021, to March 31, 2024, signaling that the company has minimal to no debt relative to its assets, capital, and equity.
Additionally, the financial leverage ratio has shown some fluctuations, increasing from 1.48 in 2021 to 3.07 in 2024. This suggests that the company has been relying more on debt to finance its operations in 2024. However, the financial leverage ratio for March 31, 2025, is not available, denoted by '\u2014', making it challenging to assess the current trend.
Overall, Mesa Laboratories Inc's solvency ratios reflect a conservative financial strategy with little reliance on debt to fund its operations. The increase in the financial leverage ratio in 2024 may warrant further monitoring to ensure that the company maintains a healthy balance between debt and equity financing in the future.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | — | -47.38 | 0.90 | 1.21 | -0.64 |
Interest coverage ratio is a key financial metric that assesses a company's ability to meet its interest obligations with its operating income. A higher ratio indicates a healthier financial position, as it reflects a company's stronger ability to cover interest expenses.
Looking at the data provided for Mesa Laboratories Inc:
1. March 31, 2021: The interest coverage ratio was negative (-0.64), indicating that the company's operating income was not sufficient to cover its interest expenses during that period.
2. March 31, 2022: The interest coverage ratio improved to 1.21, suggesting that the company's operating income was just sufficient to cover its interest obligations.
3. March 31, 2023: The interest coverage ratio decreased slightly to 0.90, indicating a decrease in the company's ability to cover its interest expenses.
4. March 31, 2024: The interest coverage ratio severely declined to -47.38, which is a concerning sign as it shows a significant inability to cover interest expenses with operating income.
5. March 31, 2025: The data is not available for this period.
Overall, the trend in Mesa Laboratories Inc's interest coverage ratio shows fluctuations over the years, with periods of improvement and deterioration. The negative interest coverage ratio in 2021 and the substantial decline in 2024 raise red flags regarding the company's financial health and its ability to meet its interest obligations. Further analysis of the company's financial performance and operational efficiency may be warranted to understand the underlying reasons for these fluctuations in the interest coverage ratio.