Days Inventory Outstanding

Average number of days inventory is held before sale.

DIO translates inventory performance into the language of cash and working capital.

Average inventory of $3M against $12M COGS gives about 91 days.

Read alongside payables and receivables days to understand the full cash cycle.

Reduce excess and obsolete stock, shorten replenishment cycles, improve supplier flexibility.

Comparing DIO across businesses with different sourcing footprints.