average days in inventory turnover
- Days Sales of Inventory (DSI) or Days Inventory. The inventory turnover ratio on its own takes some time to put into perspective. Going a step further, days sales of inventory (DSI), also known as days inventory, is simply the inverse of the inventory turnover ratio multiplied by 365. This puts the figure into a daily context, as follows: (Average Inventory Ã· Cost of Goods Sold) x 365 DSI significantly changes between industries and it is important to compare it against peer companies. Businesses that sell perishable products like supermarkets or groceries stores have lower inventory days than business that sell ...