Days Inventory Outstanding (DIO): Definition, Calculation, and Analysis скачать в хорошем качестве

Days Inventory Outstanding (DIO): Definition, Calculation, and Analysis

In this video, we'll cover the concept of Days Inventory Outstanding (DIO), also known as Inventory Days of Supply or Inventory Turnover Days. DIO is a financial ratio that measures how many days a company's inventory sits on its shelves before being sold. By tracking DIO, businesses can assess their inventory management efficiency, identify potential inventory-related issues, and optimize their cash flow. We'll explain how to calculate DIO and provide some examples and interpretations of DIO values across industries. We'll also discuss the limitations and caveats of using DIO as a performance metric, such as the impact of seasonal variations, production cycles, and supply chain disruptions. Whether you're a student, a business owner, or an investor, understanding DIO can help you make informed decisions about inventory investments, pricing strategies, and risk management. Watch this video to learn more about Days Inventory Outstanding and its relevance to financial analysis.