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Days Inventory Outstanding Calculator
Measure the average number of days inventory sits before being sold.
Inputs
Enter your numbers
$
$
Result
Your calculation
Days Inventory Outstanding
60.0 days
Implied Inventory Turnover
6.08x
Average Inventory
$120000.00
Annual COGS
$730000.00
Formula Used
(Average Inventory ÷ COGS) × 365
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Formula
(Average Inventory ÷ COGS) × 365
DIO converts inventory turnover into a more intuitive number — the average number of days a unit sits in inventory before sale.
Worked Example
Average inventory is $120,000 at cost. Annual COGS is $730,000. DIO = (120,000 ÷ 730,000) × 365 ≈ 60 days. The retailer holds about two months of supply on average.
Frequently Asked Questions
What is a healthy DIO?+
It depends on the category. Grocery 20–25 days, apparel 60–90 days, furniture 100+ days.
Is DIO the same as inventory turnover?+
They are inverse views. DIO = 365 ÷ Turnover. Both describe the same underlying performance.
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