Inventory Days

Fundamental Library

Accumulated Depreciation
Adjustments (Cash Flow from Operating Activities)
Advance from Customers
Asset Turnover
Bonus Issue
Book Value / Equity Capital
Buyback
CAGR (Compound Annual Growth Rate)
Capital Work in Progress (CWIP)
Cash and Cash Equivalents
Cash Conversion Days
Cash Flow Per Share (CF/Share)
Cash From Financing
Cash From Investing
Cash From Operations
Chairman
Changes in Working Capital
Common Sized
Consolidated Financial Statements
Current Assets
Current Investments
Current Liabilities
Current Ratio
D/A
D/E
Debt
Depreciation
DII
Discount Rate
Discounted Cash Flow (DCF)
Dividend Yield
Dividend/Share
Dividends
EBIT
EBITDA
EBT
Effective Tax Rate
Employee Cost
EPS
EV/EBITDA
Exceptional Items (Income Statement)
Executive Director
Face Value
Fair Value
FCF Per Share
FII (Foreign Institutional Investor)
Financial Leverage Multiplier in Du Pont Analysis
Free Cash Flow Yield
Government Holding
Gross Block
Implied Growth Rate
Independent Directors
Institutional Holdings
Interest Coverage Ratio
Interest Expense
Inventories
Inventory Days
Long Term Loans & Advances
Long Term Provisions
Manufacturing Expenses
Market Cap
Net Block
Net Cash Flow
Net Profit
Non-Current Assets
Non-Current Investments
Non-Current Liabilities
Non-Executive Director
Non-Independent Directors
NPM (Net Profit Margin)
OPM (Operating Profit Margin)
Other Current Assets
Other Current Liabilities
Other Expense
Other Income
Other Non-Current Assets
P/B
P/E
P/S
Payable Days
PEG
Power Fuel Cost
Promoter Pledge
Promoters
PV (Present Value)
Quarterly Results
Raw Material Cost
Receivable Days
Reserves
Retail/Public Shareholding
Rights Issue
ROA (Return on Assets)
ROCE
ROE
Sales
Secured Loans
Selling and Distribution Costs
SGA costs
Share Capital
Shareholding Pattern
Short Term Borrowings
Short term loan and advances
Short Term Provisions
Standalone Financial Statements
Stock Splits
Tax
Tax %
Total Expense
Trade Payables
Trade Receivables
Unsecured Loans

Inventory Days

Explanation: Inventory Days, also known as Days Inventory Outstanding (DIO), measures the average number of days it takes for a company to sell its entire inventory. It is calculated by dividing the average inventory over a period by the cost of goods sold (COGS) per day. Inventory Days indicate how efficiently a company manages its inventory levels and reflects its ability to turn inventory into sales. A lower inventory days value suggests faster inventory turnover and more efficient inventory management.

Example: Maruti Suzuki has inventory days of 11.72 as of FY23. This means, on average, it takes Maruti Suzuki approximately 11.72 days to sell its entire inventory. A lower inventory days value indicates that Maruti Suzuki efficiently manages its inventory, swiftly converting it into sales. Efficient inventory management enables Maruti Suzuki to minimize carrying costs associated with holding inventory for extended periods and respond promptly to changes in market demand.

You can view the Inventory Days for any company on Radar under Cash Conversion Cycle in the Ratios section.

Open Demat Account