Mesa Laboratories Inc (MLAB)

Interest coverage

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 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -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 4,044
Interest expense (ttm) US$ in thousands 10,590 9,604 7,491 5,697 4,603 3,909 4,218 4,184 4,628 4,484 4,085 3,945 4,928 5,860 6,979 8,024 7,785 7,764 6,853 5,957
Interest coverage -24.52 -26.70 -35.20 -47.38 1.00 0.99 2.11 1.05 0.99 0.04 0.23 1.93 2.71 1.86 1.41 1.39 0.19 0.25 0.32 0.68

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-259,631K ÷ $10,590K
= -24.52

The interest coverage ratio of Mesa Laboratories Inc has shown fluctuating trends over the period reported. The ratio was below 1 for most of the quarters, indicating that the company may have had difficulties meeting its interest obligations with its operating income alone.

Specifically, the interest coverage ratio improved significantly from March 31, 2021, reaching its peak at 2.71 on December 31, 2021. This suggests that Mesa Laboratories Inc was in a better position to cover its interest expenses with operating profits during this period.

However, the ratio declined in the following quarters, dropping to 0.23 on June 30, 2022, and even turning negative in the quarters ending March 31, 2024, to December 31, 2024. A negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health and ability to meet debt obligations.

Overall, Mesa Laboratories Inc's interest coverage ratio has exhibited volatility, indicating varying levels of financial stability and ability to service its debt over the period analyzed.