Series 79: Days Inventory Outstanding (DIO)

Taken from our FINRA Investment Banking Exam

Definition of the term Days Inventory Outstanding (DIO)...

the average number of days it takes for a company’s inventory to turn over during a given accounting period, such as a fiscal year. It equals the number of days in the accounting period over the inventory turnover ratio. Compare to inventory turnover ratio.

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Solomon Exam Prep Study Materials for the Series 79
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