How to calculate days inventory outstanding (DIO)?
Days inventorying outstanding, which is commonly referred to as days in inventory, is a metric that is used to describe the average number of days that are required to sell inventory. A higher amount of days indicates that a company is less efficient in converting inventory into sales.

Back To All Questions
You might also be interested in...
-
How to calculate days sales outstanding (DSO) or days sales in accounts receivable?
This is a metric that reflects the success that the firm has in collecting receivables that remain outstanding. A higher amount of days will generally indicate that the company is taking a longer amount of time to collect its receivables.
-
How to calculate days payable outstanding (DPO)?
Days of payables outstanding is a metric that reflects the average time (generally in days) that an organization will take to pay off its debt outstanding. Generally, a higher days payables outstanding ratio will indicate that it takes a company a longer amount of time to pay off its bills.
-
What is the cash conversion cycle and how is the cash conversion cycle calculated?
The cash conversion cycle is a metric that is used to describe how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. The cash conversion cycle is considered a metric that expresses the length of time, in days, that is takes for a company...
How to calculate days sales outstanding (DSO) or days sales in accounts receivable?
This is a metric that reflects the success that the firm has in collecting receivables that remain outstanding. A higher amount of days will generally indicate that the company is taking a longer amount of time to collect its receivables.
How to calculate days payable outstanding (DPO)?
Days of payables outstanding is a metric that reflects the average time (generally in days) that an organization will take to pay off its debt outstanding. Generally, a higher days payables outstanding ratio will indicate that it takes a company a longer amount of time to pay off its bills.
What is the cash conversion cycle and how is the cash conversion cycle calculated?
The cash conversion cycle is a metric that is used to describe how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. The cash conversion cycle is considered a metric that expresses the length of time, in days, that is takes for a company...