This is perfect if you are looking to compare the performance of your business to the performance of others. It is over-used because of its simplicity to use, but it's also one of the most popular financial tools in use today. That is because the Days Sales of Inventory (DSI) chart allows an investor/owner to calculate the ratio of each company's asset value to its current liabilities. This allows them to see how long it will take for that company's assets to pay for its liabilities. If a company's DSI is low, that indicates that the company takes a long time to turn inventory into sales, which is a good thing in the eyes of investors. If the DSI is high, that means that the company turns inventory into sales very quickly.The days sales of inventory (DSI) is a financial ratio that indicates the average time in days that a company takes to turn its inventory, including goods that are a work in progress, into sales. This is just one measure of how long it takes a company to sell its inventory. Other measures of inventory turnover include inventory turns, days in inventory and inventory turnover ratio.
