← Back to glossary Category: Financiar · Acronym: DIO Days Inventory Outstanding (DIO) Quick answer: The average number of days goods sit in stock before being sold. Key takeawaysDemand forecast accuracyOrder quantities (EOQ, MOQ)Dead stock and overstock What DIO is Days Inventory Outstanding (DIO) = (average inventory / cost of goods sold) × 365. It shows how many days, on average, a product sits in the warehouse before selling. It's the days-equivalent of inventory turnover. Why it matters to the board DIO is the operational component of the Cash Conversion Cycle (CCC). The lower the DIO, the less cash stays locked in stock. It's operations' direct lever on working capital. What influences DIO Demand forecast accuracy Order quantities (EOQ, MOQ) Dead stock and overstock How Azuvio helps Azuvio lowers DIO through forecasting, correct reorder points and dead-stock elimination, turning fewer days of inventory into measurable freed cash. Frequently askedDIO vs inventory turnover?They are the same information expressed differently: turnover = how many times stock rotates per year; DIO = how many days it sits. DIO = 365 / turnover.How do I reduce DIO without stockouts?Through accurate forecasting and a calibrated reorder point, not blind under-stocking. The goal is less dead stock, not less availability. Where Azuvio fitsSoftware OMSSoftware WMSConectori ERP Related termsCash Conversion Cycle (CCC) — The number of days cash stays locked in operations: inventory + receivables − payables to suppliers.Inventory turnover — How many times stock is fully sold and replenished in a period — a measure of capital efficiency.Dead stock — Goods unsold for a long period that lock capital and space, with little prospect of selling at normal price.Working capital — The difference between current assets and current liabilities — the cash a company has to fund daily operations. A key financial-health indicator. Last updated: 2026-07-06