The formula to calculate Days in Inventory (DI) is:
\[ DI = \frac{365}{IT} \]
Where:
Days in Inventory is used to determine how quickly a company is converting its inventory into sales.
Inventory Turnover is a measure of the number of times inventory is sold or used in a time period such as a year.
Let's assume the following value:
Using the formula:
\[ DI = \frac{365}{IT} \]
Evaluating:
\[ DI = \frac{365}{10} \]
The Days in Inventory is 36.5.
| Inventory Turnover | Days in Inventory |
|---|---|
| 5 | 73.00 |
| 6 | 60.83 |
| 7 | 52.14 |
| 8 | 45.63 |
| 9 | 40.56 |
| 10 | 36.50 |
| 11 | 33.18 |
| 12 | 30.42 |
| 13 | 28.08 |
| 14 | 26.07 |
| 15 | 24.33 |