Formula
Inventory days = Average inventory ÷ COGS × 365.
Calculate days inventory outstanding from average inventory and annual cost of goods sold.
Compare average inventory with the annual cost of goods sold to estimate how many days of COGS are held in inventory.
Inventory days = Average inventory ÷ COGS × 365.Calculate days inventory outstanding from average inventory and annual cost of goods sold.
Inventory days = Average inventory ÷ COGS × 365.
Compare average inventory with the annual cost of goods sold to estimate how many days of COGS are held in inventory.