DIO Calculator

Calculate days inventory outstanding (DIO) from opening and closing inventory and cost of goods sold over a period.

811.2K uses Updated · 2026-05-14 Runs locally · zero upload
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The DIO Calculator measures the average number of days a company holds inventory before selling it. It is a core supply-chain efficiency metric and a key input in cash conversion cycle analysis.

How to Use DIO Calculator

  1. Enter opening and closing inventory balances for the period.
  2. Provide cost of goods sold (COGS) for that period.
  3. Select the period in days (default 365).
  4. Review DIO and the average inventory used in the calculation.

Formula & Theory - DIO Calculator

avg_inventory = (opening_inventory + closing_inventory) / 2
DIO = (avg_inventory / COGS) × days

Use Cases for DIO Calculator

  • Identify slow-moving inventory.
  • Compare inventory turnover across product lines.
  • Calculate the cash conversion cycle (CCC = DSO + DIO − DPO).
  • Plan production and procurement schedules.

Frequently asked questions about DIO Calculator

What is a healthy DIO?

It depends on industry. Retailers often target lower DIO, while heavy-equipment manufacturers may carry inventory for months.

Should I use ending or average inventory?

Average inventory smooths seasonal fluctuations. This calculator uses the average of opening and closing balances.

How does DIO interact with DSO and DPO?

They form the cash conversion cycle: CCC = DSO + DIO − DPO. Lowering DIO shortens the cycle.

Is my data stored?

No. Calculations run only in your browser.