Days Inventory

Black and White Strong and Bold Community Protest Crisis Hub Facebook Post (23)

Days Inventory

Dictionary Definition

This ratio measures the average length of time units are in inventory.



Why it Matters to You

A small number indicates that a company is more efficiently and frequently selling off its inventory, which means rapid turnover leading to the potential for higher profits.  A large value may indicate that the company has obsolete inventory.


There are no comments yet. Be the first one to leave a comment!