⚡Efficiency Ratios
Days Sales in Inventory
365 ÷ Inventory Turnover = Days Sales in Inventory
What It Means
Average days inventory sits before selling.
Example
Inventory Turnover:5
365 ÷ 5
Days Sales in Inventory = 73 days
Related Formulas
Inventory Turnover
Cost of Goods Sold ÷ Average Inventory = Inventory Turnover
Accounts Receivable Turnover
Net Credit Sales ÷ Average Accounts Receivable = A/R Turnover
Days Sales Outstanding (DSO)
365 ÷ Accounts Receivable Turnover = Days Sales Outstanding
Asset Turnover
Net Sales ÷ Average Total Assets = Asset Turnover
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