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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.

Sector Focus

FMCGManufacturingAutomobileIndustrial

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.

Check company Inventory Days cycles →🔍

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