Days Inventory Outstanding (DIO) measures how efficiently a company manages its inventory by indicating the average number of days it takes to sell its inventory. It’s calculated by dividing the average inventory by the cost of goods sold (COGS) and then multiplying by the number of days in the period. A lower DIO suggests better inventory management and faster inventory turnover, while a higher DIO may indicate slower sales or excess inventory.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Enterprise Receivables Management System to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
