Mesa Laboratories Inc (MLAB)

Days of sales outstanding (DSO)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Receivables turnover		—	5.54	5.15	4.47	5.63
DSO	days	—	65.94	70.89	81.63	64.82

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. DSO measures the average number of days it takes for a company to collect payment after making a sale.

For Mesa Laboratories Inc, the trend of DSO over the years is as follows:
- As of March 31, 2021, the DSO was 64.82 days.
- By March 31, 2022, the DSO increased to 81.63 days, indicating that it took longer for the company to collect payments from its customers.
- In the following year, the DSO decreased to 70.89 days by March 31, 2023, showing an improvement in the collection process.
- As of March 31, 2024, the DSO further decreased to 65.94 days, suggesting continued efficiency in accounts receivable management.
- Unfortunately, the data for March 31, 2025, is unavailable.

Overall, Mesa Laboratories Inc experienced fluctuations in its DSO over the years. The company managed to reduce DSO from the high in 2022 to a more favorable level by 2024, indicating improvements in collecting payments from customers. Further analysis would be needed to understand the factors contributing to these fluctuations and to assess the effectiveness of the company's accounts receivable management practices.