inventoryturnover.calc
DIO TERMINAL

Days inventory outstanding calculator.

DIO is 365 divided by inventory turnover. Type your numbers; the calculator returns DIO, turnover, and the implied working capital sitting in stock.

How DIO is computed

Days inventory outstanding equals 365 divided by annualised inventory turnover, or equivalently average inventory divided by daily cost of goods sold. The two formulas return the same number when COGS is annualised correctly. The calculator below handles the annualisation for partial periods.

NYU-STERN 2026 INVESTOPEDIA 2026

Healthy DIO ranges

Grocery clears in 26 days at the median. Apparel sits closer to 90. Jewelry runs over 240. Use the industry selector inside the calculator to swap benchmarks.

Period choice

Lenders and auditors prefer trailing-twelve-month inputs. Monthly or quarterly inputs work for an internal flash, but annualise carefully: a 90-day window with seasonally heavy sales will flatter DIO if read raw.

How DIO ladders into the cash conversion cycle

Cash conversion cycle equals DIO plus days sales outstanding minus days payable outstanding. DIO is the inventory leg and usually the cheapest leg to move at the SMB scale.

INPUTS
TERMINAL READOUT
Inventory turnover
0.0x
Days inventory outstanding
0days
Working capital freed at median
$0
Your ratio vs Apparel Retail median (4.0x)NYU-STERN 2026
0x5x10x15x20x