01
Days sales inventory formula
Average beginning and ending inventory, divide by COGS, then multiply by the number of days in the same reporting period.
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Days Sales Inventory Calculator
Calculate days sales of inventory from beginning and ending inventory value, COGS, and a declared reporting period.
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01 USE IT NOW02 NO ACCOUNT03 FIELD NOTES BELOW
WORKING INPUTS
Match inventory value and COGS to one period.
LIVE RESULT
Days sales of inventory
82.13 daysHistorical cost-basis ratio; it is not a forecast stockout date.AVERAGE INVENTORY$90,000.00
INVENTORY TURNOVER4.44×
DAILY COGS$1,095.89
REPORTING PERIOD365 days
57
THE TIME INSIDE INVENTORY
Put stock and cost flow on the same clock.
DSI translates the average inventory carried during a period into the number of days that cost flow represents at the period's COGS rate.
WORKING VIEW
82.13 DAYSFULL-YEAR COST BASIS
METHODaverage inventory ÷ COGS × period days
WORKING NOTE$90,000 average inventory · $400,000 COGS · 365 days
INPUTS → CLEAR OUTPUT
THE FIELD NOTES
Quick answer above. Better decisions below.
Use the result now, then read the practical notes for assumptions, examples, limitations, and the choices behind it.
FULL-YEAR COST BASIS82.13 DAYS
$90,000 average inventory · $400,000 COGS · 365 days
02
Use a consistent cost basis
Inventory and COGS should both use cost rather than mixing retail value with cost value.
03
Separate days from turns
Inventory turnover reports how many times average inventory moved through COGS during the period.
04
Read DSI as a historical ratio
Seasonality, stockouts, purchases, write-downs, and a two-point average can distort the result.
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Days sales inventory formula
Average beginning and ending inventory, divide by COGS, then multiply by the number of days in the same reporting period.
The calculator keeps full precision and rounds only the displayed result.
Use a consistent cost basis
Inventory and COGS should both use cost rather than mixing retail value with cost value.
Beginning, ending, and COGS must cover the same business, location, and product scope.
Separate days from turns
Inventory turnover reports how many times average inventory moved through COGS during the period.
DSI expresses the inverse relationship as time, which is easier to compare with working-capital and replenishment horizons.
Read DSI as a historical ratio
Seasonality, stockouts, purchases, write-downs, and a two-point average can distort the result.
DSI does not predict a stockout date or replace SKU-level demand forecasting.
Questions, answered.
How do you calculate days sales of inventory?
Divide average inventory by cost of goods sold and multiply by the number of days in the reporting period.
Should inventory be at cost or retail value?
Use the same cost basis as COGS. Mixing retail inventory value with cost-based COGS makes the ratio inconsistent.
Is DSI the same as days of inventory remaining?
No. DSI is a historical accounting ratio; days remaining is usually a forward-looking stock-coverage estimate based on sales velocity.
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