DIO - Revision history

imported>Doug Williamson: Mend link.

2022-06-25T20:19:36Z

Mend link.

← Older revision		Revision as of 20:19, 25 June 2022
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	* [[Cost of goods sold]]		* [[Cost of goods sold]]
	* [[Creditors]]		* [[Creditors]]
			* [[Days sales outstanding ]] (DSO)
	* [[DPO]]		* [[DPO]]
	* [[DSO]]
	* [[Inventory]]		* [[Inventory]]
	* [[Operating cycle]]		* [[Operating cycle]]

imported>Doug Williamson: Correct spelling.

2018-12-12T11:04:03Z

Correct spelling.

← Older revision		Revision as of 11:04, 12 December 2018
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	A lower ~~the~~ number of days is usually considered desirable, because it is a quick measure of the amount of stock held, although the business must also gauge the amount of stock required to meet customers’ delivery expectations.		A lower number of days is usually considered desirable, because it is a quick measure of the amount of stock held, although the business must also gauge the amount of stock required to meet customers’ delivery expectations.

imported>Doug Williamson: Expand calculation.

2018-12-01T15:17:15Z

Expand calculation.

← Older revision		Revision as of 15:17, 1 December 2018
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	A working capital management ratio calculated by dividing inventory outstanding at the end of a time period by the average daily cost of goods sold for the period.		A working capital management ratio calculated by dividing inventory outstanding at the end of a time period by the average daily cost of goods sold for the period.

	For example: a company holds on average £30,000 of stock over a year. It sells £300,000 of goods per annum. ~~The DIO is:~~		For example: a company holds on average £30,000 of stock over a year. It sells £300,000 of goods per annum.

	30,000/300,000*365 = 36.5		The DIO is:

			30,000 / 300,000 * 365 = 36.5 days


			A lower the number of days is usually considered desirable, because it is a quick measure of the amount of stock held, although the business must also gauge the amount of stock required to meet customers’ delivery expectations.

	A lower the number of days is usually considered desirable because it is a quick measure of the amount of stock held although the business must gauge the amount of stock required to meet customers’ delivery expectations.

	Also known as inventory days.		Also known as inventory days.

imported>Baseby2@msn.com at 09:03, 21 November 2018

2018-11-21T09:03:48Z

← Older revision		Revision as of 09:03, 21 November 2018
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	Days Inventory Outstanding.		Days Inventory Outstanding.

	A working capital management ratio calculated by dividing inventory outstanding at the end of a time period by the average daily cost of goods sold for the period.		A working capital management ratio calculated by dividing inventory outstanding at the end of a time period by the average daily cost of goods sold for the period.

			For example: a company holds on average £30,000 of stock over a year. It sells £300,000 of goods per annum. The DIO is:

			30,000/300,000*365 = 36.5

			A lower the number of days is usually considered desirable because it is a quick measure of the amount of stock held although the business must gauge the amount of stock required to meet customers’ delivery expectations.

	Also known as inventory days.		Also known as inventory days.
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	* [[Operating cycle]]		* [[Operating cycle]]
	* [[Payables management]]		* [[Payables management]]

			[[Category:Technical_skills]]
			[[Category:Context_of_treasury]]
			[[Category:Corporate_financial_management]]

imported>Doug Williamson: Add link to Operating cycle page.

2017-02-09T16:18:11Z

Add link to Operating cycle page.

← Older revision		Revision as of 16:18, 9 February 2017
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	* [[DSO]]		* [[DSO]]
	* [[Inventory]]		* [[Inventory]]
			* [[Operating cycle]]
	* [[Payables management]]		* [[Payables management]]

imported>Doug Williamson: Added link

2016-10-12T13:13:47Z

Added link

← Older revision		Revision as of 13:13, 12 October 2016
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	* [[DPO]]		* [[DPO]]
	* [[DSO]]		* [[DSO]]
			* [[Inventory]]
	* [[Payables management]]		* [[Payables management]]

imported>Doug Williamson: Create the page. Source: The Treasurer, October 2016, p32.

2016-10-12T08:48:42Z

Create the page. Source: The Treasurer, October 2016, p32.

New page

Days Inventory Outstanding.

A working capital management ratio calculated by dividing inventory outstanding at the end of a time period by the average daily cost of goods sold for the period.

Also known as inventory days.

== See also ==
* [[Cost of goods sold]]
* [[Creditors]]
* [[DPO]]
* [[DSO]]
* [[Payables management]]