Days Inventory Outstanding (DIO)
Average days inventory is held before sale
FORMULA
DIO = (Average Inventory / Cost of Goods Sold) × 365
Alternate Calculations
Using Inventory Turnover
365 / Inventory Turnover RatioWhat is Days Inventory Outstanding?
Days Inventory Outstanding measures the average number of days a company holds inventory before selling it. It reflects inventory efficiency and supply chain management. Lower DIO indicates faster inventory turnover and better working capital management. Varies significantly by industry.
Chart
Edit the data below to update the chart. Download as PNG or SVG — free, no sign-up required.
CSV or tab-separated format · edit to update chart live · 4 rows
Sample Data
| month | inventory | cogs | dio |
|---|---|---|---|
| Jan | 300,000 | 350,000 | 31 |
| Feb | 310,000 | 360,000 | 31 |
| Mar | 305,000 | 370,000 | 30 |
| Apr | 295,000 | 380,000 | 28 |
Required Data Columns
Average InventoryCost of Goods Sold