Days Inventory Outstanding (DIO)

Knowledge Center

   

Description of Days Inventory Outstanding. Explanation.

 

Days Inventory Outstanding (DIO)

Definition Days Inventory Outstanding (DIO). Description


Days Inventory Outstanding (DIO) is a financial performance ratio, which indicates how long it takes a company to turn its inventory into sales.


Although the average DIO varies from one industry and region to another, it can be said that the lower the DIO, the more efficient a company is.


Calculation of Days Inventory Outstanding. Formula

The DIO ratio is calculated as follows:


DIO = (Inventories / Cost of Goods Sold in Accounting Period) x Days in Accounting Period


In this formula, the days in accounting period are typically 90 days for quarterly statements or 365 days for yearly statements.


DIO forms one part of the Cash Conversion Cycle, which represents the length of time that it takes a company to convert resource inputs into cash flows.


Days Inventory Outstanding (DIO) is also known as Days Sales of Inventory (DSI), Days Inventory Held (DIH), Days in Inventory (DII) and Days Inventory on Hand (DOH).


Special Interest Group - Days Inventory Outstanding


Special Interest Group (28 members)


Forum - Days Inventory Outstanding  

In the forum section you will find recent discussions within this knowledge area.


  What is the Meaning of a Particular Value of Days Inventory Outstanding (DIO)? (3 reactions)
I would like to know: if my DIO is 40.5 then what can be int...
 
 
 
 
  Optimal Inventory Turnover Ratio (1 reactions)
What should be the ideal inventory turnover ratio in manufac...
 
 
 
 
  Zero Level Days Inventory Outstanding (DIO) is is the Ultimate Goal
As mentioned in the definition '... The lower the DIO, the m...
 
 
 
 

Best Practices - Days Inventory Outstanding

In the best practices section you will find the best forum discussions within this knowledge area.



Expert Tips - Days Inventory Outstanding

In the expert tips section you will find advices from experts within this knowledge area.



Resources - Days Inventory Outstanding

In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area.


Financial Statement Analysis | Ratio Analysis

Ratio Analysis, Finanical Statement Analysis...
 

Managing your Inventory: Quick Introduction to Just in Time, Stock Review and ABC Analysis

Basic Understanding of 3Inventory Management Techniques...
 
 

News about Days Inventory Outstanding


     
 

Videos about Days Inventory Outstanding


     
 

Presentations about Days Inventory Outstanding


     
 

Books about Days Inventory Outstanding


     
 

More about Days Inventory Outstanding


     
Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Days Inventory Outstanding (DIO) summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.0 - Last updated: 17-6-2019. All names of their owners.