Mesa Laboratories Inc (MLAB)

Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio is generally considered favorable as it suggests the company is generating sufficient earnings to cover its interest charges.

Analyzing the interest coverage ratios of Mesa Laboratories Inc over the years:

1. In March 31, 2021, the interest coverage ratio was -0.64, indicating that the company's operating profits were not sufficient to cover its interest expenses. This negative ratio raises concerns about the company's ability to meet its debt obligations.

2. By March 31, 2022, the interest coverage ratio improved to 1.21, showing that the company's operating income was just enough to cover its interest expenses. While this is an improvement from the previous year, the ratio is still below the ideal level of 2 or higher.

3. In March 31, 2023, the interest coverage ratio slightly decreased to 0.90, indicating a weaker ability to cover interest expenses compared to the preceding year. This may raise concerns about the company's financial health and its capacity to service its debt.

4. By March 31, 2024, the interest coverage ratio drastically declined to -47.38, indicating a significant deterioration in the company's ability to cover its interest expenses. Such a low ratio suggests severe financial distress and a high risk of default on debt obligations.

5. Unfortunately, data for March 31, 2025 is unavailable (indicated as "—"), making it impossible to provide an analysis for that period.

In summary, Mesa Laboratories Inc's interest coverage ratio has shown fluctuations over the years, with some periods indicating a struggle to cover interest expenses adequately. The significant decline in the ratio in 2024 raises concerns about the company's financial stability and ability to manage its debt effectively.

Peer comparison

Mar 31, 2025