Days Inventory Outstanding Calculator

Calculate days inventory outstanding (DIO). Measure how long inventory sits before being sold.

Days Inventory Outstanding (DIO) measures the average number of days a company holds inventory before selling it. Lower DIO indicates faster inventory turnover and better working capital efficiency.

Calculator

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$
Days Inventory Outstanding
0 days
Inventory Turnover
0.00x
Monthly Turnover Rate
0.00x

Common use cases

  • Working capital management
  • Supply chain optimization
  • Cash flow forecasting
  • Benchmarking against competitors

How to use

  1. Enter your average inventory value
  2. Input cost of goods sold for the period
  3. Specify the period in days (default 365)
  4. View days inventory outstanding

FAQ

What DIO is considered good?

Lower is generally better. Most retailers aim for 30-60 days. Manufacturing may be longer.

How does DIO affect cash flow?

Higher DIO ties up more cash in inventory, reducing available working capital.

How can I reduce DIO?

Improve demand forecasting, reduce lead times, implement just-in-time inventory, and identify slow-moving items.

This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.