Mesa Laboratories Inc (MLAB)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.54	5.91	5.88	6.16	5.15	3.86	3.92	3.37	3.04	4.38	6.31	6.75	5.63	6.38	6.88	6.77	5.57	5.64	8.58	8.05
DSO	days	65.94	61.77	62.07	59.25	70.89	94.65	93.11	108.32	119.94	83.29	57.82	54.07	64.82	57.23	53.07	53.93	65.54	64.76	42.53	45.33

March 31, 2024 calculation

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

The Days Sales Outstanding (DSO) ratio for Mesa Laboratories Inc has shown some fluctuations over the period analyzed. DSO measures the average number of days it takes for a company to collect revenue after a sale is made.

In the latest reporting period, the DSO stood at 65.94 days, indicating that, on average, Mesa Laboratories collects payments from its customers in about 66 days. Compared to the previous quarter's DSO of 61.77 days, there has been a slight increase in the number of days it takes to collect receivables.

Looking at the trend over the past several quarters, Mesa Laboratories saw a spike in DSO in the fourth quarter of fiscal year 2023, with the ratio reaching its peak at 119.94 days. This was then followed by a downward trend, reaching the lowest level at 42.53 days in the third quarter of fiscal year 2019 before picking up again.

The fluctuations in DSO could be influenced by various factors, including changes in the company's credit policies, customer payment behavior, economic conditions, and industry dynamics. It is essential for Mesa Laboratories to actively manage its accounts receivable and collection processes to ensure efficient cash flow management and timely revenue conversion.

Further monitoring and analysis of DSO trends will be crucial for Mesa Laboratories to assess the effectiveness of its credit and collection practices and maintain a healthy working capital position.