Mesa Laboratories Inc (MLAB)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.38 | 0.23 | 0.27 | 0.27 | 0.26 | 0.26 | 0.26 | 0.25 | 0.24 | 0.32 | 0.28 | 0.28 | 0.24 | 0.23 | 0.24 | 0.25 | 0.34 | 0.33 | 0.35 | 0.11 |
| Debt-to-capital ratio | 0.54 | 0.30 | 0.31 | 0.31 | 0.30 | 0.31 | 0.31 | 0.31 | 0.30 | 0.37 | 0.30 | 0.30 | 0.26 | 0.26 | 0.27 | 0.27 | 0.39 | 0.37 | 0.37 | 0.13 |
| Debt-to-equity ratio | 1.18 | 0.42 | 0.44 | 0.44 | 0.43 | 0.44 | 0.45 | 0.45 | 0.43 | 0.58 | 0.42 | 0.42 | 0.36 | 0.35 | 0.36 | 0.37 | 0.64 | 0.59 | 0.60 | 0.15 |
| Financial leverage ratio | 3.07 | 1.84 | 1.64 | 1.66 | 1.68 | 1.71 | 1.75 | 1.80 | 1.80 | 1.82 | 1.52 | 1.54 | 1.48 | 1.51 | 1.50 | 1.51 | 1.86 | 1.80 | 1.70 | 1.34 |
Mesa Laboratories Inc's solvency ratios show the company's ability to meet its long-term obligations and obligations in general.
The debt-to-assets ratio has been fluctuating over the periods provided, ranging from 0.23 to 0.38. This ratio indicates that, on average, Mesa Laboratories Inc finances around 23% to 38% of its assets through debt.
The debt-to-capital ratio reflects a similar trend, ranging from 0.30 to 0.54. This ratio shows that Mesa Laboratories Inc uses debt to finance around 30% to 54% of its capital structure, with the rest coming from equity.
The debt-to-equity ratio demonstrates Mesa Laboratories Inc's increasing reliance on debt financing, reaching a high of 1.18 in the latest period. This indicates that for every dollar of equity, the company has $1.18 of debt.
The financial leverage ratio has also been fluctuating, ranging from 1.34 to 3.07. This ratio shows how much debt the company uses to finance its assets compared to its equity, with higher numbers indicating higher financial leverage.
Overall, Mesa Laboratories Inc's solvency ratios suggest a mix of debt and equity financing in its capital structure, with a potential shift towards higher debt levels in recent periods, which could indicate increased financial risk. It is important for stakeholders to closely monitor these ratios to assess the company's financial health and ability to meet its long-term obligations.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -47.38 | 0.89 | 0.86 | 1.85 | 0.92 | 1.32 | 0.02 | 0.29 | 2.78 | 2.73 | 1.87 | 1.43 | 1.29 | 0.54 | 0.61 | 0.71 | 1.38 | 2.28 | 5.42 | 5.44 |
The interest coverage ratio measures a company's ability to pay interest expenses on outstanding debt. A higher ratio indicates a greater ability to meet interest obligations. Looking at the data for Mesa Laboratories Inc, the interest coverage has been volatile over the past several quarters, ranging from negative values to positive values.
For the most recent quarter ending March 31, 2024, Mesa Laboratories Inc reported an interest coverage ratio of -47.38, indicating that the company's earnings were not sufficient to cover its interest expenses. This could be a concerning sign as it suggests the company may be struggling to meet its debt obligations.
In the preceding quarter, the interest coverage improved slightly to 0.89, but remained below 1, indicating that the company's earnings were just enough to cover its interest expenses. However, this ratio is still considered low and implies a limited margin of safety for meeting interest payments.
In contrast, there were quarters such as December 31, 2019, and September 30, 2019, where Mesa Laboratories Inc had more comfortable interest coverage ratios of 5.42 and 5.44, respectively. These higher ratios suggest the company had strong earnings relative to its interest expenses during those periods.
Overall, the fluctuating interest coverage ratios of Mesa Laboratories Inc indicate varying levels of financial health and ability to service debt over the analyzed period. Investors and creditors may view the negative and low interest coverage ratios with caution, as they indicate potential challenges in meeting interest obligations, while the higher ratios reflect periods of better financial performance.