Days' sales in inventory is calculated as:

A) Ending inventory divided by cost of goods sold.
B) Cost of goods sold divided by ending inventory.
C) Ending inventory divided by cost of goods sold times 365.
D) Cost of goods sold divided by ending inventory times 365.
E) Ending inventory times cost of goods sold.

Days' Sales In Inventory

A financial metric that measures the average number of days a company takes to sell its inventory.

Ending Inventory

The value of unsold goods at the end of an accounting period.

Inventory Management

The supervision and control of ordering, storing, and using a company's inventory, both raw materials and finished products.