Days Sales in Inventory

Accounting Dictionary

Days Sales in Inventory

Days sales in inventory are computed by dividing average inventory by the average daily cost of goods sold.

This measures how long it takes from the time you buy inventory to the time you replace the sold inventory. The shorter this is the better for the company.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!