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Days in Inventory Calculator

LAST UPDATE: August 24th, 2018

Calculator

What is Days in Inventory?

Days in Inventory is a measurement of the number of days an item spends in inventory.

Formula

Days in Inventory = (Inventory / Cost of Sales) x 365

Example

A company has inventory of $4,000 and cost of sales of $2,000.

Days in Inventory = ($4,000 / $2,000) x 365 = 2 x 365 = 730

Therefore, an item will spend 730 days in inventory.

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