Mesa Laboratories Inc (MLAB)

Interest coverage

		Mar 31, 2025	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	13,813	-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
Interest expense (ttm)	US$ in thousands	11,221	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
Interest coverage		1.23	-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

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,813K ÷ $11,221K
= 1.23

The interest coverage ratio of Mesa Laboratories Inc has shown significant fluctuations over the reporting periods. As of March 31, 2024, and June 30, 2024, the company experienced negative interest coverage ratios of -47.38 and -35.20, respectively, indicating that the company's earnings were insufficient to cover its interest expenses during these quarters.

However, the situation improved by the end of March 31, 2025, with an interest coverage ratio of 1.23, suggesting that the company's earnings could cover its interest costs adequately during that period. It's worth noting that a ratio below 1 indicates that the company is not generating enough earnings to cover its interest payments.

These wide fluctuations in Mesa Laboratories Inc's interest coverage ratios highlight the importance of closely monitoring the company's financial performance and capital structure to ensure its ability to service its debt obligations efficiently.