Days inventory outstanding (DIO) is a financial metric that measures the average number of days it takes for a company to turn its inventory into sales.
DIO = (Average Inventory / Cost of Goods Sold) x Number of Days in the Period
- Average Inventory = (Beginning Inventory + Ending Inventory) / 2
- Cost of Goods Sold = Total cost of producing and selling goods during the period
- Number of Days in the Period = The number of days in the reporting period (e.g. quarter or year)
DIO Related Resources
Datasheet