Inventory Days Sales is a measure of how quickly your inventory is turning over. It’s calculated by dividing the value of your most recent inventory on hand with the total cost of goods sold in the same period of time. A higher number indicates that your inventory is moving faster and you are generating more sales for each unit of inventory; a lower number means that it takes longer to sell through your inventory, which can result in loss of sales or excess stock. By keeping track of your Inventory Days Sales ratio, you can make sure that you are investing appropriately in inventory and taking advantage of any opportunities to increase profitability.