What is Average Days to Sell Inventory?
This financial ratio indicates the average time in days that a company takes to turn its inventory into sales.
How to Calculate The Average Days to Sell Inventory?
To calculate the average days to sell inventory, simply divide the ending inventory by the cost of goods sold by the same time period. Multiply the result by 365.
Days to Sell Inventory = (Ending Inventory / Cost of Goods Sold for the Period) x 365