Inventory Days
Average number of days inventory sits before being sold. Lower is better: it means you're converting inventory to sales faster and tying up less cash.
- How it's worked out
- (Inventory / Daily COS) × Days
- Which way is better
- Lower is betterLower is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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