2 min read
DSI = average inventory ÷ cost of goods sold × 365. Fewer days means stock turns faster and less cash is locked up.
How to use it
Enter the average value of stock you hold and your annual cost of goods sold. The result is how many days, on average, an item sits in inventory before it's sold — and how many times a year your stock turns over.
Lower is usually better: faster-moving stock frees cash and reduces the risk of obsolescence. Very low can mean you're risking stockouts. Compare against your suppliers' lead times to find the right balance.
Everything runs in your browser — nothing you type is sent or stored. Results are illustrative, not a quote or a credit decision.
Frequently asked questions
Why use cost of goods sold, not revenue?
Because inventory is valued at cost, not selling price. Using cost of goods sold keeps both sides of the ratio on the same basis, so the days figure is accurate. Using revenue would understate the days.
What's a good number of days?
It's very sector-specific — fresh food turns in days, machinery in months. The useful test is your own trend and your suppliers' lead times: hold enough to avoid stockouts, no more.
Is this a quote?
No — it's a free illustration. Your actual Credicorp offer depends on an assessment of your company.
Related reading
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.