Inventory Days Definition
Inventory days is a metric used to measure the number of days it would take to sell all of the inventory on hand. The formula for inventory days is:
Inventory Days = (Inventory / Sales) * 365
For example, if a company has $1 million in inventory and its sales are $10 million per year, its inventory days would be:
Inventory Days = ($1 million / $10 million) * 365
= 36.5 inventory days
