Days Sales In Inventory / Stock Holding Ratio (Average Age of Inventory) | Explained with Example

What is the Days Sales In Inventory Ratio (Average Age of Inventory)? What is the formula for calculating the Days Sales In Inventory ratio / Stock Holding Ratio / Average Age of Inventory? How do you calculate the Stock Holding / Days Sales in Inventory Ratio / Average Age of Inventory? How do you analyze/interpret the Stock Holding / Days Sales in Inventory / Average Age of Inventory Ratio?
In this lesson, we explain what the Stock Holding / Days Sales in Inventory / Average Age of Inventory Ratio is, how to analyze/interpret the ratio, and go through the formula and a clear example of how to calculate it.
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[@Lebogang09]

Awesome explanation and example. Thanks

[@byufan53]

Thank you so much for your clear explanation!

[@amylee7963]

Very helpful, thank you

[@AlieKoroma-lf1lx]

Thanks, your method of teaching has helped me a lot. hope you continue with more topics.

[@few-ge5cs]

You are so helpful thank you!!

[@mesaquemasaplaudaxd4686]

Man you are better than the tutors

[@missyrv7165]

you are clear as crystal :)

[@sitinurjihanrahmat3363]

Thank you so much, sir

[@tawandampepoimba7589]

Thanks for the video Man, would kindly ask if you have notes on this topic for further study

[@antoniopillay5024]

Hello. I'm wanting to calculate ROS. I have monthly rates of sale, 6 months average rate of sale, Inventory on hand, months until inventory runs out. I need to calculate how much inventory to order based on ROS and inventory on hand.

[@jemaimabangisan8094]

what if the cost of goods sold are not in the income statement?

[@glennology97]

The balance sheet I'm looking at now doesn't have cost of goods sold, so can I use this formula instead? "Inventory/accounts receivable×365"

[@Counttuts]

Cost of goods sold is found in the income statement.

[@SharondaGriffinMinistries]

Can the first formula for the month like 30 days vs 365 I just started my business last month but I am making money

[@dewirohimawati6254]

Inventory is refer to total inventory or material inventory?

[@bernarderpelua8928]

What’s goods are we discussing please.