Days Inventory Outstanding (DIO)

Knowledge Center

Summary, forum, best practices, expert tips and resources.


Days Inventory Outstanding (DIO)

What is Days Inventory Outstanding (DIO)? Meaning.

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).

Days Inventory Outstanding Special Interest Group

Special Interest Group (25 members)

Forum about Days Inventory Outstanding  

Discussions about Days Inventory Outstanding.

What is the Meaning of a Particular Value of Days Inventory Outstanding (DIO)?
I would like to know: if my DIO is 40.5 then what can be interpreted from this? Is this good, bad, poor or do I need som (...)
🔥 NEW Optimal Inventory Turnover Ratio
What should be the ideal inventory turnover ratio in manufacturing industry and in a service industry? How can we achiev (...)
Zero Level Days Inventory Outstanding (DIO) is is the Ultimate Goal
As mentioned in the definition '... The lower the DIO, the more efficient a company is...' You can read this also in a (...)

Best Practices about Days Inventory Outstanding

Here you find the most valuable discussions from the past.

Expert Tips about Days Inventory Outstanding

Here you will find advices by experts.

Information Sources about Days Inventory Outstanding

Here you will find powerpoints, videos, news, etc.

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 (...)
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
2020 12manage - The Executive Fast Track. V15.5 - Last updated: 5-7-2020. All names of their owners.