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days inventory

A measure of performance, calculated by average inventory divided by average daily cost of sales. This returns a figure equivalent to the number of days an item is held as inventory before it is sold. The lower the days inventory, the more efficient the company is, all other things being equal. Days inventory is the first step measured in the cash conversion cycle, followed by Days Sales Outstanding and days payable outstanding.

Related information about days inventory:
  1. Days Sales Of Inventory (DSI) Definition | Investopedia
    Days Sales Of Inventory (DSI). Also known as days inventory outstanding (DIO). Investopedia Says. Investopedia explains 'Days Sales Of Inventory - DSI' ...
     
  2. How to Calculate Days of Inventory on Hand | Chron.com
    by Carter McBride, Demand Media. Companies can calculate days inventory on hand to see their efficiency with moving inventory. Calculator image by Alhazm ...
     
  3. DAYS INVENTORY DEFINITION
    DAYS INVENTORY shows the average length of time items are in inventory, i.e., how many days a business could continue selling using only its existing ...
     
  4. 4 Tips on How to Calculate Days in Inventory - wikiHow
    Jun 28, 2011 ... http://www.financeformulas.net/Days-in-Inventory.html · http://smallbusiness. chron.com/calculate-days-inventory-hand-1664.html ...
     
  5. What is days inventory? definition and meaning
    Definition of days inventory: A measure of performance, calculated by average ... The lower the days inventory, the more efficient the company is, all other things ...
     
  6. Days Inventory Outstanding Analysis - wikiCFO
    Aug 16, 2012 ... Days inventory outstanding is a measure ratio to control inventory turns.
     
  7. Number of Days Inventory Ratio
    Formula to calculate the number of days inventory ratio.
     
  8. Days in Inventory - FinanceDog Financial Training
    Days in Inventory. Definition. Days in Inventory or DII is also known as inventory days. Essentially, it measures the number of days inventory stays in the system.