This Days Sales in Inventory Excel Calculator allows companies to determine how fast they move inventory. Days sales in inventory (DSI), also referred to as inventory days or days in inventory, measures the average number of days it takes a company to convert its inventory to sales. DSI is also one of the metrics used to find out the cash conversion cycle, which is the average days it takes the company to convert resources into cash flows. The formula for calculating days sales in inventory is as follows: DSI = Inventory / Cost of Goods Sold x Number of Days in the Period Generally speaking, a low DSI is favorable because it means that a company is managing its inventory efficiently and selling inventory quickly. If you’d like to see more examples in addition to this day sales in inventory excel calculator, make sure to check all the Financial Model templates on CFI Marketplace.
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