Days in inventory

From Wikipedia, the free encyclopedia
Jump to: navigation, search

'Days in inventory' is an efficiency ratio that measures the average number of days the company holds its inventory before selling it.

The formula for DII is:

DII = \dfrac{average~inventory}{COGS/Days}

where the average inventory is the average of inventory levels at the beginning and end of an accounting period, and COGS/day is calculated by dividing the total cost of goods sold per year by 365 days.[1]

See also[edit]


  1. ^ Berman, K., Knight, J., Case, J.: Financial Intelligence for Entrepreneurs, page 149. Harvard Business Press, 2008.

External links[edit]