Days Sales of Inventory (DSI)
The Days Sales of Inventory value, or DSI, is a financial measure showing how many times a company's inventory is sold and replaced over a period of time. It highlights a company's performance, which gives investors an idea of how long it takes a company to turn its inventory (including goods that are a work in progress, if applicable) into sales. Generally, a lower (or shorter) DSI is preferred, but it is important to note that the average DSI varies from one industry to another.
Calculated as: (Inventory/Cost of Sales) x 365