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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.
5 Ιουν 2024 · 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,...
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
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
6 Μαΐ 2022 · Days in inventory is calculated by dividing average inventory (in dollars) over a given time by cost of goods sold (COGS) during that period and multiplying the result by the number of days in the period (typically a quarter or a year).
DSI = (Inventory / Cost of Sales) x (No. of Days in the Period) Example. For the year-end 2015 financial statements, Target Corp. reported an ending inventory of $1M and a cost of sales of $100M. Given the figures, the DSI for the year is 3.65 days, meaning it takes approximately 4 days for the company to sell its stock of inventory.
17 Ιαν 2024 · 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)
