PLAIN-LANGUAGE DEFINITION
The average number of days inventory is held before being sold. High DIO means cash is tied up in unsold goods. Formula: Inventory ÷ (COGS ÷ 365).
What to check
Review the cash timing behind the metric, not just the reported sale or expense.
Where this connects to Impresa
You may encounter this concept when reviewing Cash Flow Engine. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Cash Flow Engine guideA NOTE ON INTERPRETATION
NEXT DEFINITIONOperating Cycle ↗Definitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.