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.