Mesa Laboratories Inc (MLAB)

Cash conversion cycle

		Mar 31, 2025	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
Days of inventory on hand (DOH)	days	—	105.14	114.73	124.29	134.89	158.23	142.14	151.38	148.08	141.93	112.08	120.14	119.36	133.80	84.80	88.44	86.27	87.99	81.38	89.55
Days of sales outstanding (DSO)	days	63.57	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
Number of days of payables	days	—	15.28	23.10	22.14	24.94	20.03	20.79	23.79	26.22	26.45	30.93	33.78	38.31	44.15	31.23	29.51	34.52	27.58	12.73	19.52
Cash conversion cycle	days	63.57	149.19	155.93	160.18	175.89	199.97	183.42	186.84	192.75	185.07	149.65	162.76	162.68	172.93	111.38	112.99	116.57	117.63	121.72	123.96

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 63.57 – —
= 63.57

The cash conversion cycle of Mesa Laboratories Inc has shown fluctuation over the years based on the provided data. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From June 30, 2020, to December 31, 2021, the trend was generally decreasing, indicating an improvement in the efficiency of Mesa Laboratories' working capital management. However, there was a significant increase in the cash conversion cycle from December 31, 2021, to March 31, 2022, followed by fluctuations until March 31, 2025.

The company's cash conversion cycle peaked at 199.97 days on December 31, 2023, and decreased significantly to 63.57 days by March 31, 2025, indicating a more efficient management of the company's working capital during that period.

Overall, Mesa Laboratories Inc should aim to maintain a lower cash conversion cycle to improve liquidity, optimize working capital management, and enhance overall financial performance. Fluctuations in the cash conversion cycle should be monitored to identify any potential inefficiencies in the company's operations that may require attention.