Mesa Laboratories Inc (MLAB)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total assets	US$ in thousands	446,796	661,832	707,369	601,475	409,108
Total stockholders’ equity	US$ in thousands	145,393	393,480	393,801	406,227	220,013
Financial leverage ratio		3.07	1.68	1.80	1.48	1.86

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $446,796K ÷ $145,393K
= 3.07

The financial leverage ratio of Mesa Laboratories Inc has exhibited significant fluctuations over the past five years. It increased from 1.86 in 2020 to 3.07 in 2024, indicating a notable rise in financial leverage. This suggests that the company has increased its reliance on debt financing relative to equity during this period. A higher financial leverage ratio may indicate higher financial risk and interest payment obligations, which could impact the company's financial stability and profitability. It is important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively to ensure long-term financial sustainability.