Bookkeeping

Days Sales in Inventory DSI Formula, Example, Analysis, Calculator

Let’s assume that a company has an opening stock of $20,000 and a closing stock of $25,000. This means that when DSI is low, inventory turnover will be high, and high DSI makes for low inventory turnover. For instance, comparing a seasonal retailer to a business with steady year-round sales probably won’t produce anything helpful. But make sure you’re actually looking at competitors in your same industry. Venturing too far away from what you do won’t provide the insights you need. Best P...
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