Mesa Laboratories Inc (MLAB)

Cash conversion cycle

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Days of inventory on hand (DOH)	days	143.80	148.08	119.36	86.95	77.97
Days of sales outstanding (DSO)	days	65.94	70.89	81.63	64.82	65.54
Number of days of payables	days	26.59	26.22	38.31	34.79	23.77
Cash conversion cycle	days	183.15	192.75	162.68	116.98	119.74

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 143.80 + 65.94 – 26.59
= 183.15

The cash conversion cycle of Mesa Laboratories Inc has shown variations over the past five years.

In March 2024, the cash conversion cycle was 183.15 days, representing the time taken from the initial outlay of cash for inventory to the realization of cash from the sale of the inventory. This indicates an improvement from the previous year, where the cycle was 192.75 days.

Comparing to March 2022, there was an increase in the cash conversion cycle in 2023, which was 162.68 days. However, this was still lower than the cycle in 2021, which was 116.98 days, indicating a longer cycle in 2023.

Looking back at March 2020, the cash conversion cycle was 119.74 days, showing a slight increase over the years. Overall, Mesa Laboratories Inc has experienced fluctuations in its cash conversion cycle, with efforts needed to optimize working capital management to shorten the cycle and improve cash flow efficiency.