Days Inventory Outstanding(DIO)

Days inventory outstanding (DIO), defined also as days sales of inventory, indicates how many days on average a company turns its inventory into sales.
It shows how quickly management can turn inventories into cash. 

Calculate the DIO formula using the following equation:

DIO = (average inventory / cost of goods sold) * 365 days

DIO(monthly) = (average inventory / cost of goods sold) * 30.42


* 30.42 = 365 days /  12 month