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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 and is used to determine the liquidity of the company’s inventory.
21 Απρ 2024 · The formula to calculate days inventory outstanding (DIO) consists of dividing the average (or ending) inventory balance by cost of goods sold (COGS) and multiplying by 365 days. Days Inventory Outstanding (DIO) = (Average Inventory ÷ Cost of Goods Sold) × 365 Days
Streamline your inventory management with our Excel guide on Days Inventory Outstanding (DIO) — techniques, impacts, and step-by-step calculation explained!
26 Ιουλ 2023 · The formula is as below: Days Inventory Outstanding = Average Inventory / Cost of Goods Sold * 365. To calculate the average inventory, you take the mean of the inventory held at the start of the year (opening inventory) and at the end of the year (closing inventory).
13 Φεβ 2024 · Days Inventory Outstanding Formula and Example. The Days Inventory Outstanding is a financial ratio represented by the following formula: DIO = ( Avg Inventory / COGS) x No. of Days. Where . DSI: Days Sales of Inventory; Avg Inv: Average Inventory = [(beginning inventory + ending inventory)/2] or Average inventory = ending inventory in some cases
The document provides examples of calculating days in inventory using closing inventory and cost of goods sold figures for three companies - X Ltd., Tata Steel Ltd., and Nocil Ltd. It shows the calculations to determine days in inventory for each company and financial year.
16 Ιουλ 2019 · This free inventory days calculator calculates the number of days sales a business is holding in stock. Free Excel download.
