Days Inventory Outstanding

	How do I determine the number of days of inventory outstanding for my business?
	The average number of days of inventory outstanding is measured by

Manufacturing firms hold inventory through 3 stages: (click for details)

The breakdown among finished goods, work in process and raw materials inventory is often available in the notes to financial statements. Cost of goods manufactured can be calculated from financial statements as: cost of goods sold + ending (finished goods) inventory – beginning (finished goods) inventory.

Note: Unlike manufacturers, merchandising firms hold only one type of inventory- finished goods.