Finance

Days Inventory Outstanding (DIO) Calculator

Calculate how many days on average your inventory sits before being sold.

Average Inventory ($)

Cost of Goods Sold (COGS) ($)

Period (days)

Formula:
DIO = (Average Inventory / COGS) × 365
Inventory Turnover = COGS / Average Inventory
Lower DIO = faster inventory movement

What Does DIO Tell You?

DIO measures the average number of days a company holds its inventory before selling it. A lower DIO means the company is converting inventory to sales more quickly, which generally indicates better efficiency and less capital tied up in stock.