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Number of days sales in inventory is calculated as

Number of days sales in inventory is calculated as
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Answer #1

● Number of days sales in inventory is calculated as follows:-

Number of days sales in inventory =(365/inventory turnover ratio)

OR

( Average stock/cost of revenue from operation)×365

How we calculate inventory turnover ratio=

Inventory turnover ratio= (Cost of revenue from operation/ average inventory)

Average inventory = (opening stock/closing atock)/2

I hope u understand .....If u have any query comment ...I will try to resolve ......And if u like the answer plz rate it.

  

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