Days’ Sales in Inventory Calculator

Instructions: You can use our Days' Sales in Inventory Calculator, by providing the Cost of Goods Sold \((COGS)\), the current inventory and the previous inventory in the form below:

Cost of Goods Sold \((COGS)\) =
Current Inventory =
Previous Inventory =

Days' Sales in Inventory Calculator

More about the Days' Sales in Inventory so you can better use the results provided by this solver. The Days' Sales in Inventory is the ratio between 365 and the inventory turnover. This ratio is a measure of asset management, and it indicates the average amount of days it takes for inventory to be sold. In order to compute the Days' Sales in Inventory, we first compute the inventory turnover using the following formula:

\[ \text{Inventory Turnover} = \displaystyle \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}\]

Now, once we have the inventory turnover, we compute the Days' Sales in Inventory using:

\[ \text{Days' Sales in Inventory} = \displaystyle \frac{365}{Inventory Turnover}\]

The Days' Sales in Inventory is a broadly used financial ratio to measure efficiency in asset management. We provide many other financial ratio calculators in our site, including our current ratio, quick ratio, our days' sales in receivables, and our inventory turnover calculator.

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