Glossary
What is Days Sales of Inventory (DSI)?
Last updated July 2026
Days sales of inventory (DSI) is the average number of days a company holds inventory before selling it. Lower DSI means cash cycles back faster.
Also known as: Days inventory outstanding, DIO, inventory days
DSI = (Average Inventory ÷ Cost of Goods Sold) × 365 DSI translates an inventory balance into time. A distributor with 90 days of inventory has, on average, three months of cost of goods sitting on the shelf before it sells.
In wholesale distribution the most common band is 61–90 days; industrial and MRO operations often run higher because of long-lead spares and service buffers.
Wholesale: 61–90 days common; under 60 is strong. Industrial/MRO: 90–180+ days.
Sources: Phocas Software
Part of Working capital & inventory turns.
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