Mesa Laboratories Inc (MLAB)

Debt-to-equity ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
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
Debt-to-equity ratio		1.18	0.43	0.43	0.36	0.64

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $171,198K ÷ $145,393K
= 1.18

The debt-to-equity ratio of Mesa Laboratories Inc has exhibited variability over the past five years, indicating changes in the company's capital structure and leverage. The ratio increased from 0.64 in 2020 to 1.18 in 2024, suggesting a higher degree of financial leverage in the most recent year. This increase may indicate that Mesa Laboratories has taken on more debt relative to equity, possibly to fund growth initiatives or strategic investments.

The significant rise in the debt-to-equity ratio from 2023 to 2024 could raise concerns about the company's financial risk and ability to meet its debt obligations. Investors and creditors may consider the higher ratio as a signal of increased risk, as higher levels of debt could lead to greater financial vulnerability, especially in periods of economic uncertainty.

Further analysis of Mesa Laboratories Inc's financial statements and business operations is recommended to fully understand the reasons behind the changing debt-to-equity ratio and to assess the company's overall financial health and stability.