Days sales in inventory (DSI) is the number of days it takes a company to sell its inventory. Days sales in inventory is also called days to sell inventory, inventory days, days sales of inventory, and inventory days. Days sales in inventory is calculated by dividing 365 by the company’s inventory turnover: Days sales in inventory = 365 / inventory turnover Inventory turnover = cost of goods sold / average inventory Days sales in inventory (DSI) is inversely related to inventory turnover. A low DSI means high inventory turnover (good for the company). A high DSI means low inventory turnover (bad for the company). To sign up for the email list, click here: http://eepurl.com/dIaa5z To support me on Patreon, click here: https://www.patreon.com/prof_mclaughlin 0:00 Introduction 0:06 How to calculate DSI 0:26 Don't use ending inventory 0:45 Example of DSI calculation 1:38 Inverse relation of DSI to turnover 1:52 Benefits of low …
