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The days sales of inventory (DSI) is a financial ratio that indicates the average time in days that a company takes to turn its inventory, including goods that are a work in progress,...
What is Days Inventory Outstanding (DIO)? Days inventory outstanding (DIO) is the average number of days that a company holds its inventory before selling it. The days inventory outstanding calculation shows how quickly a company can turn inventory into cash.
Our DIO calculator (days inventory outstanding) allows you to calculate the time it takes for a company to turn its inventory into sales.
What is Days Inventory Outstanding? The Days Inventory Outstanding (DIO) is the number of days it takes on average before a company needs to replace its inventory. DIO is often measured to improve a company’s go-to-market, sales and marketing (S&M), and product pricing strategies based on historical customer demand and spending patterns.
Days inventory outstanding (DIO) refers to the typical number of days a company maintains its inventory before selling it. How quickly a firm can turn inventory into cash is shown by computing the day's outstanding inventory.
The days inventory outstanding formula is a metric that measures the average number of days a company holds an item before it is sold. To calculate DIO, choose a time period based on your sales cycle or accounting period, and use the following formula: Days inventory outstanding = (Average inventory / Cost of goods sold) x (# of Days)
Days Inventory Outstanding refers to the financial ratio that calculates the average number of days of inventory that the company has held before selling it to the customers, thereby giving a clear picture of the cost of holding and potential reasons for the delay in selling inventory.
The days sales of inventory (DSI) is an important financial ratio and metric that helps indicate how much time in days that it takes a company to turn its inventory. The ratio also includes any goods that are still a work in progress.
Days in inventory (DII) — also known as days sales in inventory (DSI), days in inventory outstanding (DIO) and inventory days of supply — is a metric that describes how many days’ worth of sales (in dollars) a business keeps in inventory.
Learn about Days Inventory Outstanding (DIO), a vital metric in inventory management, to optimize stock levels and boost operational efficiency.