A high Days Inventory Outstanding (DIO) suggests slower inventory turnover, potentially indicating excessive inventory levels or inefficiencies in sales and operations. This could lead to increased carrying costs, storage expenses, and risks of obsolescence. Conversely, a low DIO signifies efficient inventory management, with faster turnover rates, optimized cash flow, and reduced carrying costs, contributing to improved profitability and liquidity.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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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 Autonomous O2C 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.
