Mesa Laboratories Inc (MLAB)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Receivables turnover		6.15	5.68	6.29	5.54	5.91	5.88	6.16	5.15	5.25	5.33	4.78	4.47	4.38	6.31	6.75	5.63	6.38	6.88	6.77	5.57
DSO	days	59.33	64.30	58.03	65.94	61.77	62.07	59.25	70.89	69.59	68.50	76.41	81.63	83.29	57.82	54.07	64.82	57.23	53.07	53.93	65.54

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.15
= 59.33

The Days Sales Outstanding (DSO) is a key financial ratio that indicates how long it takes for a company to collect its accounts receivable. For Mesa Laboratories Inc, the DSO has fluctuated over the period from March 31, 2020, to December 31, 2024. Initially, the DSO was 65.54 days in March 2020, decreased to 53.07 days by September 2020, and remained relatively stable around 50-60 days until December 2021.

However, beginning in March 2022, the DSO started to increase significantly, reaching a peak of 83.29 days by December 2021. This prolonged collection period could indicate potential issues with the company's credit policies, collection processes, or customer payment behaviors.

Subsequently, Mesa Laboratories Inc managed to bring down the DSO to around 60 days by December 2024, which suggests an improvement in its accounts receivable management. Overall, monitoring the DSO trend is crucial for understanding the efficiency of Mesa Laboratories Inc in collecting payments from customers and managing its working capital effectively.