29
April
2018
|
14:16
Europe/Amsterdam

What is days sales in inventory?

Mr Ted Teo from the Department of Finance at NUS Business School explained that a company’s days sales in inventory (DSI) refers to the average number of days that a firm takes to convert its inventory into sales. By examining how DSI changes over time, one can detect subtle changes in a company’s management of its production-to-sale cycle and the competitiveness of its business and products.