The Number of Days of Inventory is an activity ratio that represents the average number of days required for a firm to convert its inventory into sales. It is equal to the number of days in a period divided by the inventory ratio for the period.
Some other related topics you might be interested to explore are Inventory Turnover, Operating Cycle, and Net Operating Cycle.
This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as an Accountant, Financial Analyst, Corporate Finance Practitioner, or Finance Manager.
You can now download the Excel template for free.
Number of Days of Inventory is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum.
