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.
Peer comparison
Dec 31, 2024