Days Sales Of Inventory (DSI)

Definition

A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory (including goods that are work in progress, if applicable) into sales. Also known as days inventory outstanding (DIO).

Formula

Use Case / Interpretation

Generally, the lower (shorter) the DSI the better, but it is important to note that the average DSI varies from one industry to another.

Tags

idea, inventory, performance

Metadata

Category: Financial Ratios · Added: May 17, 2026