inventory days |
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Definition
Average number of days goods remain in inventory before being sold. As a measure of short-term sales potential, a number above the industry norm indicates problems with sales forecasts. And a number below the norm indicates loss of sales due to the firm's inability to fulfill demand. Also called days cover, days Of inventory, or days sales to inventory. Formula: Average inventory x 365 ÷ sales revenue.
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inventory days is in the Accounting & Auditing, Banking, Commerce & Finance and Inventory Control & Storage subjects.
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