Glossary
Days sales of inventory
Days sales of inventory is the number of days your current stock lasts at the current selling pace before it runs out.
What it means for a shop owner
You work it out by dividing stock by average daily sales. A big number means locked cash and a very small one risks a stockout. Compare it with the supplier lead time to know when to order.
A worked example
You hold 300 pieces and sell 10 a day, so stock lasts 30 days. If the supplier needs 12 days, you still have time before ordering.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes