Days Inventory Outstanding (DIO) Calculator
Use this calculator to determine how many days, on average, inventory stays before being sold.
Calculate Your DIO
INR
INR
Formula: DIO = (Average Inventory / Cost of Goods Sold) × 365
What is DIO?
DIO measures the average number of days it takes to sell through inventory. It's a key indicator of inventory liquidity and operational efficiency.
Why is This Important?
Lower DIO means faster inventory movement, better cash cycle, and leaner operations. It helps track working capital usage.
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Frequently Asked Questions (FAQs)
What is Days Inventory Outstanding (DIO)?
DIO shows the average number of days inventory is held before it's sold, indicating how quickly a company moves its stock.
How do you calculate DIO?
The formula is: DIO = (Average Inventory ÷ Cost of Goods Sold) × 365.
Why is DIO important in inventory management?
It helps assess inventory efficiency, cash flow, and the time taken to convert inventory into revenue.
What does a low DIO indicate?
A low DIO means faster inventory turnover, better cash flow, and efficient inventory management.
Who can benefit from using this DIO calculator?
Retailers, supply chain managers, finance teams, and business owners can use it to track inventory performance and optimize working capital.
Is the WareIQ DIO calculator free to use?
Yes, the calculator is completely free and helps businesses gain quick insights into inventory turnover and operational health.