Dec 6, 2023 · Inventory Days = (Average Inventory ÷ Cost of Goods Sold) × 365 Days. Average Inventory: The average inventory balance is calculated by taking the sum of the inventory balances …

Mar 10, 2025 · Finding the days in inventory for your business will show you the average number of days it takes to sell your inventory. The lower the number you calculate, the better return on your …

Days in inventory tell you how many days it takes for a firm to convert its inventory into sales. Let’s have a look at the formula given below. Days in Inventory Formula = 365 / Inventory Turnover. As you can …

Apr 13, 2025 · DSI is calculated based on the average value of the inventory and cost of goods sold during a given period or as of a particular date. Mathematically, the number of days in the …

Jun 6, 2025 · To calculate days in inventory, divide the average inventory cost by the cost of goods sold and multiply that by the period length, usually 365 days. Calculating days in inventory can help show …

Aug 8, 2025 · Throughout this guide, you'll discover the precise method for how to calculate days sales in inventory, interpret what your results mean for your specific business type, and implement …

The formula to calculate days in inventory is the number of days in the period divided by the inventory turnover ratio. This formula is used to determine how quickly a company is converting their inventory …

May 6, 2022 · Days in inventory (DSI or DII) measures how long it takes a business to generate sales equal to the value of its inventory. The metric is used to gauge the efficiency of a company’s …

Feb 22, 2025 · Calculating Inventory Days involves determining how long, on average, inventory stays in stock before being sold. The formula is: Inventory Days = (Average Inventory ÷ Cost of Goods Sold) …

Dec 5, 2025 · Understand Days Inventory Outstanding (DIO), how to calculate it, what high or low DIO means, and how to improve inventory efficiency with smarter planning.