Calculate Inventory Days of Supply (DoS) | Days Inventory Outstanding
Days In Inventory Calculation
An online inventory period calculator measures the average number of days the company holds its inventory before selling it.
Days in Inventory & Average Inventory Formula
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Days in Inventory = 365 x Average Inventory / Cost of goods sold
How to Calculate Days in Inventory
Inventory at the end of 2017 is $1000 and at the end of 2018 is $1200
Average inventory for 2018 = ($1000 + $1200) / 2
= $2,200 / 2
COGS per day = $7,300 / 365 = $20.
= $1,100 / $20
= 55 days
Inventory stayed in the system for an average of 55 days.