The number of days inventory is also known as average inventory period and inventory holding period A high number of days inventory indicates that their is a lack of demand for the product being sold

A low days inventory ratio (inventory holding period) may indicate that the company is not keeping enough stock on hand to meet demands.
The number of days inventory and inventory turnover ratios are included in the the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio.

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