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Last Reviewed: October 26, 2026
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What is Inventory Days? Days Inventory Outstanding (DIO)
#Working Capital#Inventory Days#DIO#Supply Chain Efficiency
The Answer
Inventory Days measures the average number of days a company holds raw materials and finished goods before selling them to customers.
Why it Matters
Spikes in inventory days indicate slow-moving goods, channel inventory blockages, or raw material hoarding, which locks up cash.
Sentinel Insight
“Inventory buildups precede margin drops. If sales growth slowing while inventory days rising, write-offs are highly probable.”
📊 How to Interpret
Days < 30 days
Highly Liquid Cycle
Days 30 - 60 days
Efficient / Controlled
Days 60 - 90 days
Working Capital Trap
Days > 90 days
Inventory Glut Risk
In Risk Context
Working capital efficiency indicator in FMCG and Industrial sectors.
Detect risk early
Flagium tracks these signals across multiple quarters to help you avoid structurally weak companies before it reflects in price.
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