Mesa Laboratories Inc (MLAB)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		5.54	5.15	4.47	5.63	5.57
DSO	days	65.94	70.89	81.63	64.82	65.54

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.54
= 65.94

The Days Sales Outstanding (DSO) ratio for Mesa Laboratories Inc has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the DSO stood at 65.94 days, showing a slight decrease compared to the previous year's 70.89 days. This indicates that the company took approximately 66 days on average to collect its accounts receivable during the period.

Comparing this trend to the preceding years, we observe that in fiscal year 2022, the DSO was notably higher at 81.63 days, signaling a longer collection period. However, there was a significant improvement in fiscal year 2021 with a DSO of 64.82 days, suggesting more efficient accounts receivable management during that period.

Overall, Mesa Laboratories Inc's DSO ratio has displayed variability in the past five years, reflecting fluctuations in the company's collection efficiency and liquidity position. This metric is essential for assessing the effectiveness of the organization in converting its credit sales into cash and managing potential liquidity challenges. Further analysis and comparison with industry benchmarks may provide deeper insights into Mesa Laboratories Inc's operational performance and financial health.