Inventory Days Calculator

✖Average Inventory is the average value of inventory over a specific period, usually a year or a fiscal quarter.ⓘ Average Inventory [AI]			+10% -10%
✖Cost Of Goods Sold represents the total cost of producing or purchasing the goods that were sold during the same period.ⓘ Cost Of Goods Sold [COGS]			+10% -10%

✖Inventory Days is a financial metric used to measure the average number of days it takes for a company to turn its inventory into sales.ⓘ Inventory Days [ID]

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Formula

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Inventory Days

Formula

`"ID" = ("AI"/"COGS")*365`

Example

`"488.6531"=("328000"/"245000")*365`

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Inventory Days Solution

STEP 0: Pre-Calculation Summary

Formula Used

Inventory Days = (Average Inventory/Cost Of Goods Sold)*365
ID = (AI/COGS)*365
This formula uses 3 Variables

Variables Used

Inventory Days - Inventory Days is a financial metric used to measure the average number of days it takes for a company to turn its inventory into sales.
Average Inventory - Average Inventory is the average value of inventory over a specific period, usually a year or a fiscal quarter.
Cost Of Goods Sold - Cost Of Goods Sold represents the total cost of producing or purchasing the goods that were sold during the same period.

STEP 1: Convert Input(s) to Base Unit

Average Inventory: 328000 --> No Conversion Required
Cost Of Goods Sold: 245000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ID = (AI/COGS)*365 --> (328000/245000)*365

Evaluating ... ...

ID = 488.65306122449

STEP 3: Convert Result to Output's Unit

488.65306122449 --> No Conversion Required

FINAL ANSWER

488.65306122449 ≈ 488.6531 <-- Inventory Days

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has verified this Calculator and 25+ more calculators!

< 17 Asset Management Calculators

Seller's Discretionary Earnings

Go Seller Discretionary Earnings = Pre-Tax Income+Owner's Salary+Net Interest Expenses+Depreciation and Amortization+Discretionary Expenses+Non Recurring Expenses

Amortization of Intangible Assets

Go Amortization Expense = (Historical Cost of Intangible Asset-Residual Value)/Useful Life Assumption

Cash Available for Distribution

Go Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures

Residual Income

Go Residual Income = Operating Income-Minimum Required Rate of Return*Average Operating Assets

Net Capital Spending

Go Net Capital Spending = Ending Net Fixed Assets-Beginning Net Fixed Assets+Depreciation

Capital Structure

Go Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight

Allowance Method of Doubtful Accounts

Go Net Accounts Receivables = Gross Accounts Receivables-Allowance for Doubtful Accounts

Operating Working Capital

Go Operating Working Capital = Operating Current Assets-Operating Current Liabilities

Inventory Write-Down

Go Inventory Write Down = Historical Cost-Lower of Cost or Net Realizable Value

Net Realizable Value

Go Lower of Cost or Net Realizable Value = Expected Sale Price-Disposal Costs

Net Identifiable Assets

Go Net Identifiable Assets = Identifiable Assets-Total Liabilities

Expense Ratio

Go Expense Ratio = Annual Operating Expenses/Average Fund Assets

Inventory Days

Go Inventory Days = (Average Inventory/Cost Of Goods Sold)*365

Basic Earnings Power Ratio

Go Basic Earnings Power Ratio = Operating Income/Total Assets

Internal Growth Rate

Go Internal Growth Rate = Retention Ratio*Return on Assets

Depreciable Cost of Asset

Go Depreciable Cost = Purchase Cost-Salvage Value

Conversion Price

Go Conversion Price = Par Value/Conversion Ratio

Inventory Days Formula

Inventory Days = (Average Inventory/Cost Of Goods Sold)*365
ID = (AI/COGS)*365

What is Inventory Days?

The Inventory Days metric gives investors and analysts an idea of how long, on average, it takes for a company to sell its inventory. A lower Inventory Days value indicates that the company is selling its inventory more quickly, which is generally considered favorable as it suggests efficient inventory management and strong sales performance.
Conversely, a higher Inventory Days value may indicate that the company is holding onto its inventory for a longer period, which could tie up capital and increase carrying costs. This could be a sign of overstocking, slow sales, or inefficient inventory management practices.
It's important to note that the ideal number of Inventory Days can vary widely by industry. For example, industries with perishable goods or rapidly changing technology may have lower Inventory Days, while industries with durable goods or longer sales cycles may have higher Inventory Days.

How to Calculate Inventory Days?

Inventory Days calculator uses Inventory Days = (Average Inventory/Cost Of Goods Sold)*365 to calculate the Inventory Days, The Inventory Days measures the average amount of time in which a company’s inventory is held on hand until it is sold. Inventory Days is denoted by ID symbol.

How to calculate Inventory Days using this online calculator? To use this online calculator for Inventory Days, enter Average Inventory (AI) & Cost Of Goods Sold (COGS) and hit the calculate button. Here is how the Inventory Days calculation can be explained with given input values -> 488.6531 = (328000/245000)*365.

FAQ

What is Inventory Days?

The Inventory Days measures the average amount of time in which a company’s inventory is held on hand until it is sold and is represented as ID = (AI/COGS)*365 or Inventory Days = (Average Inventory/Cost Of Goods Sold)*365. Average Inventory is the average value of inventory over a specific period, usually a year or a fiscal quarter & Cost Of Goods Sold represents the total cost of producing or purchasing the goods that were sold during the same period.

How to calculate Inventory Days?

The Inventory Days measures the average amount of time in which a company’s inventory is held on hand until it is sold is calculated using Inventory Days = (Average Inventory/Cost Of Goods Sold)*365. To calculate Inventory Days, you need Average Inventory (AI) & Cost Of Goods Sold (COGS). With our tool, you need to enter the respective value for Average Inventory & Cost Of Goods Sold and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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