Days Sales of Inventory Formula
[Tex]Days~Sales~of~Inventory~(DSI)=\frac{Average~Inventory}{(\frac{Cost~of~Goods~Sold~(COGS)}{Number~of~Days~in~Period})}[/Tex]
- Average Inventory is the average value of inventory held during a specific period (usually a quarter or a year).
- Cost of Goods Sold (COGS) represents the total cost of goods sold during the same period.
- Number of Days in Period is the length of the period for which the calculation is being made.