Mesa Laboratories Inc (MLAB)

Days of inventory on hand (DOH)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Inventory turnover		—	2.54	2.46	3.06	4.20
DOH	days	—	143.80	148.08	119.36	86.95

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

The days of inventory on hand (DOH) for Mesa Laboratories Inc have shown a fluctuating trend over the period from March 31, 2021, to March 31, 2025.

The DOH increased from 86.95 days as of March 31, 2021, to 119.36 days as of March 31, 2022, indicating that the company held inventory for a longer period before selling it. This increase suggests a potential inefficiency in inventory management or challenges in matching inventory levels to sales demand.

Subsequently, there was a significant jump in DOH to 148.08 days as of March 31, 2023, suggesting a further deterioration in inventory turnover. This sharp increase might signal excess inventory levels, potentially leading to higher carrying costs and reduced liquidity.

However, there was a slight decrease in DOH to 143.80 days as of March 31, 2024, indicating a potential improvement in inventory management practices. Despite this improvement, the DOH still remained high compared to previous years, highlighting the need for continued monitoring and optimization of inventory levels.

The data for March 31, 2025, is not available, indicated by "— days," making it challenging to assess the most recent trend in inventory management efficiency.

In conclusion, the fluctuation in Mesa Laboratories Inc's days of inventory on hand reflects varying levels of inventory management effectiveness over the period, with a general trend towards higher DOH, which may require attention to optimize working capital and operational efficiency.