Days In Inventory

Description

Days in inventory is an efficiency ratio that measures the average number of days the company holds its inventory before selling it. Cost of goods sold or COGS refer to the carrying value of goods sold during a particular period.

Related formulas

Variables

DIIDays In Inventory (dimensionless)
AIAverage of Inventory (the average of inventory levels at the beginning and end of an accounting period) (dimensionless)
COGSThe total cost of goods sold per year (dimensionless)