This question is about sales person skills.

How to calculate days sales in inventory

By Zippia Team - Jan. 8, 2023

To calculate day sales in inventory, you take the average inventory, divide that by the cost of goods sold and then multiply that by the number of days in the year or quarter if you choose to do it that way.

For example, let's say that a shoe store is trying to figure out the day's sales. The average inventory was valued at $50,000, and the cost of goods sold was $150,000.

So the calculation would be 50,000 divided by 150,000 and then times that by 365, which gives you $121.7. This means, on average, it took 121.7 days for stock to turn into sales.

How to calculate days sales in inventory

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