The Days’ Sales in Inventory is a measure of: Solvency Liquidity Efficiency Profitability
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Days Sales In Inventory is a measure of company’s duration of selling it’s inventory.How many days a company takes to sell its inventory.If company’s days sales in inventory is higher it shows that company takes more time to sell it’s inventory.On the other hand if company’s Days sales in inventory is lower then it means that it takes less time to sell it’s inventory. If a company has low days sales in inventory it shows better liquidity of company because it realises quickly its inventory.