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Days Sales of Inventory |
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Days Sales of Inventory A measure of how quickly a company turns its inventory into sales. It is calculated by dividing the value of inventory by the value of sales and multiplying by 365. A shorter DSI is considered preferable, as it means there is a shorter period between the acquisition of inventory and its sale, but different industries have different standards with regard to the length of the DSI. It is used with days sales outstanding and days payable outstanding to help determine the financial health of a company. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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