Days to Sell Inventory

This video show how to calculate Days to Sell Inventory, also known as Days Sales of Inventory or Days Sales in Inventory.
You calculate Days to Sell Inventory by dividing the number of days in the period (e.g., 365 if the period is one year) by the company's Inventory Turnover (Inventory Turnover is the Cost of Goods Sold divided by the average inventory). The resulting figure is the number of days it takes the company to sell its inventory. This figure can be very useful; if it becomes very high (either relative to the company's competitors, or as part of a trend over time) this could mean the company is having difficulty selling its inventory (some of the inventory might have become obsolete, requiring an inventory writedown).
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[@nacharles2013]

Thanks for making this subject easier to understand!Blessings to you for taking the time to help others.

[@MyFinancialFocus]

Definitely important to sell inventory. Love the creative tax treatment that comes from FIFO and LIFO.

[@ronoc89]

Nice work, much better than CFA book explanation.

[@MrGob94]

You are a GOD

[@juliovasquez4559]

Help, is there a difference between the concepts of "days to sell" and "inventory days"?

[@Edspira]

The same concept has many different names, some people call it "days sales in inventory"

[@romeshkirpalani848]

Nice video

[@Edspira]

Thanks!

[@onceredacted6588]

What if day's sales inventory is negative