Mesa Laboratories Inc (MLAB)

Days of inventory on hand (DOH)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Inventory turnover		2.54	2.46	3.06	4.20	4.68
DOH	days	143.80	148.08	119.36	86.95	77.97

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.54
= 143.80

The days of inventory on hand (DOH) for Mesa Laboratories Inc have exhibited variability over the past five years. The trend indicates an increasing number of days required to sell off inventory, from 77.97 days in March 2020 to 143.80 days in March 2024. This suggests that the company may be carrying a higher level of inventory relative to its sales volume in recent years, which can tie up cash flow and potentially lead to obsolescence or storage costs. The spike in DOH from 2022 to 2023 indicates a significant increase in the time it takes to turn over inventory, which could signal potential inefficiencies in the company's inventory management or demand forecasting. Further analysis into the reasons behind this upward trend in DOH is recommended to understand the underlying factors affecting Mesa Laboratories Inc's inventory turnover efficiency.