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<p>1 revision imported</p> <p><b>New page</b></p><div>{{this}} measures the number of days worth of Inventory the company holds on its books.<br /> ===Calculation===<br /> {{math|{{this}}|{{frac|Inventory|Cost of Goods Sold|365 days}}}}<br /> where<br /> * Inventory = Average total Inventory (= average of beginning and ending inventories). This includes [[t:RM]], [[t:WIP]] and [[t:FG]] inventories<br /> * Cost of Goods Sold = Total annual Cost of Goods Sold<br /> Unit of measure: days (Calendar days)<br /> ===Importance===<br /> A lower number of days indicate a better use of working capital. Reducing inventory frees up cash. <br /> ===Notes===<br /> {{this}} measures all inventories of marketed products. This includes: [[t:FG]], [[t:RM]], [[t:WIP]], On-hold and Rejected. {{this}} reported by supply chain includes those inventories that are allocated to that specific supply chain. Returned products should therefore be reported for [[t:RL]] supply chain(s). <br /> [[Category:Metric]]<br /> {{Object<br /> |name=Days of Inventory<br /> |parent=m:AE1<br /> |sort=51200<br /> |level=2<br /> |keywords=Asset, Management, Efficiency, Inventory, Days, Supply Chain, Stock, Working, Capital<br /> |description=The number of days worth of Inventory the company holds on its books<br /> }}</div>

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