Days In Inventory Turnover (or DIT) is an efficiency ratio that measures a company’s ability to turn its inventory into cash. It’s a measure of how quickly businesses can get their products off the shelves and into the hands of customers. The higher the DIT figure, the sooner a product can be sold. To calculate DIT, divide the total number of days in a given period by the average amount of inventory held during that period. This figure gives you an estimate of how long it takes for a business to convert its inventory into cash. Knowing the DIT helps a company analyze the effectiveness of its operations and understand where improvements need to be made.