Financial Ratios

Days Inventory Outstanding

Definition

What is Days Inventory Outstanding?

Average number of days inventoryGoods held for sale, production, or consumption in the production process. remains before sale.

Example in practice

How This Looks in Practice

A retailer holds about 60 days of inventory.

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Related Terms

Financial Ratios

Gross Margin

Gross profit expressed as a percentage of revenue.

Financial Ratios

Operating Margin

Operating profit expressed as a percentage of revenue.

Financial Ratios

EBITDA Margin

EBITDA expressed as a percentage of revenue.

Equity Valuation

Earnings Per Share

Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

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