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<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>Orwiki