{"id":30600,"date":"2025-05-15T09:00:00","date_gmt":"2025-05-15T13:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=30600"},"modified":"2025-06-05T11:02:16","modified_gmt":"2025-06-05T15:02:16","slug":"days-inventory-outstanding","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/days-inventory-outstanding\/","title":{"rendered":"Unlock cash flow: Master the Days Inventory Outstanding (DIO) formula"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tUnlock cash flow: Master the Days Inventory Outstanding (DIO) formula\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col col-8 col-lg-4 entry-header__image\">\n\t\t\t<figure class=\"entry-header__thumbnail js-hero-section\">\n\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1481370237.jpg\" class=\"entry-header__thumbnail-image\" alt=\"\" fetchpriority=\"high\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1481370237.jpg 1440w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1481370237-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1481370237-684x384.jpg 684w\" sizes=\"(max-width: 1440px) 100vw, 1440px\" \/>\t\t\t<\/figure>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2025-05-15T09:00:00-04:00\">May 15, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Unlock cash flow: Master the Days Inventory Outstanding (DIO) formula\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/days-inventory-outstanding\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/ryangrundy\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/11\/Ryan-Grundy.jpg\" class=\"entry-author__image\" alt=\"ryan-grundy\" \/>\t\t\t\t<span class=\"entry-author__name\">Ryan Grundy<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">In industries like manufacturing and retail, every decision about inventory affects your bottom line.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If raw materials pile up on the shelves, they will tie up your working capital and inflate storage costs.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>But if you run too lean, you risk production delays and missed customer deadlines.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Balancing inventory is operational and strategic.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s why high-performing businesses track <strong>Days Inventory Outstanding (DIO)\u2014<\/strong>a key metric that shows how long it takes to turn inventory into revenue.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When paired with methods like <strong>First-In, First-Out (FIFO)<\/strong>\u2014commonly used to ensure older stock is sold or used first\u2014DIO can give you critical insights into stock efficiency, cash flow, and overall performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This guide will show you how to calculate and optimize DIO and use the insights to make smarter, faster decisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-days-inventory-outstanding-dio\" data-level=\"2\">What is Days Inventory Outstanding (DIO)?<\/a><\/li><li><a href=\"#h-high-versus-low-dios-what-it-means-for-your-business\" data-level=\"2\">High versus low DIOS: What it means for your business<\/a><\/li><li><a href=\"#h-days-inventory-outstanding-versus-inventory-turnover-ratio-key-differences\" data-level=\"2\">Days inventory outstanding versus inventory turnover ratio: Key Differences<\/a><\/li><li><a href=\"#h-why-is-days-inventory-outstanding-important\" data-level=\"2\">Why is Days Inventory Outstanding important?<\/a><\/li><li><a href=\"#h-dio-formula-how-to-calculate-days-inventory-outstanding\" data-level=\"2\">DIO formula: How to calculate Days Inventory Outstanding<\/a><\/li><li><a href=\"#h-days-inventory-outstanding-examples\" data-level=\"2\">Days Inventory Outstanding examples<\/a><\/li><li><a href=\"#h-what-is-an-ideal-dio-ratio\" data-level=\"2\">What is an ideal DIO Ratio?<\/a><\/li><li><a href=\"#h-optimize-dio-with-technology-nbsp\" data-level=\"2\">Optimize DIO with technology&nbsp;<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-days-inventory-outstanding-dio\"><strong>What is Days Inventory Outstanding (DIO)?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Days Inventory Outstanding (DIO), also known as Days Sales in Inventory (DSI), measures the average number of days stock sits in your business before it\u2019s sold.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>DIO is a key indicator of how efficiently you turn inventory into revenue.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s a direct lever for improving cash flow and optimizing working capital. It allows you to identify where capital is tied up, how inventory performs, and where efficiency gains can be made.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-high-versus-low-dios-what-it-means-for-your-business\">High versus low DIOS: What it means for your business<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The DIO measures the average time it takes to sell through inventory, making it a critical indicator of sales efficiency, inventory health, and cash flow performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A high DIO<\/strong> means your stock sits too long before selling, often indicating slow sales, over-purchasing, or inefficiencies in production and fulfillment.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This ties up working capital, increases holding costs, and may signal poor demand forecasting.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To improve turnover, consider adjusting purchasing strategies, offer targeted discounts, or boost marketing efforts.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A low DIO<\/strong> suggests fast inventory turnover\u2014products are selling quickly, and less capital is tied up in stock. You might have a lean, responsive supply chain.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>However, if DIO drops too low, it may indicate inventory shortages or supply chain risks.&nbsp;<\/li>\n\n\n\n<li>Improve demand forecasting, optimize reorder points, and consider increasing stock for high-demand products to maintain a balance.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-days-inventory-outstanding-versus-inventory-turnover-ratio-key-differences\"><strong>Days inventory outstanding versus inventory turnover ratio: Key Differences<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your <strong>Inventory Turnover<\/strong> <strong>Ratio (ITR)<\/strong> measures how many times your business sells and replaces its stock within a given period.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It reflects the speed at which inventory moves through your business\u2014higher inventory turnover typically signals stronger sales performance and less capital tied up in unsold goods.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-top-tip-what-is-cogs-and-why-does-it-matter-nbsp\"><strong><em>Top tip: what is COGS and why does it matter?<\/em>&nbsp;<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Cost of Goods Sold (COGS) represents the direct costs of producing or purchasing the goods you sell, such as raw materials, labor, and manufacturing overhead.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Both inventory turnover and Days Inventory Outstanding (DIO) use COGS in their formulas because it reflects the actual cost basis of your inventory, not the retail price.&nbsp;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This makes these metrics more accurate for financial analysis and cash flow planning.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-track-both-dio-and-inventory-turnover\"><strong>Track both DIO and inventory turnover<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s smart to track inventory turnover and DIO when assessing inventory efficiency. These closely related metrics offer <strong>complementary views<\/strong> of how effectively you&#8217;re managing stock.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For example, if a business has an inventory turnover of 10, it sells and replenishes its inventory 10 times a year.&nbsp;<\/li>\n\n\n\n<li>That translates to a DIO of roughly 36 days\u2014meaning, on average, items stay on the shelf just over a month before being sold.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">So, how do these two metrics compare?<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Metric<\/strong><\/th><th><strong>Days Inventory Outstanding (DIO)<\/strong><\/th><th><strong>Inventory Turnover Ratio (ITR)<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>What it measures<\/strong><\/td><td>How long inventory stays in stock before it&#8217;s sold<\/td><td>How often inventory is sold and replaced during a period<\/td><\/tr><tr><td><strong>Purpose<\/strong><\/td><td>Helps assess how efficiently inventory is being held<\/td><td>Helps assess how efficiently inventory is being sold<\/td><\/tr><tr><td><strong>Formula<\/strong><\/td><td>(Average inventory \/ COGS) \u00d7 number of days<\/td><td>COGS \/ average inventory<\/td><\/tr><tr><td><strong>Relationship<\/strong><\/td><td>Inversely related to turnover<\/td><td>Inversely related to DIO<\/td><\/tr><tr><td><strong>Ideal outcome<\/strong><\/td><td>Lower DIO = faster inventory movement<\/td><td>Higher turnover = faster inventory cycling<\/td><\/tr><tr><td><strong>Use case<\/strong><\/td><td>Useful for planning storage, holding costs, and cash flow<\/td><td>Useful for evaluating sales performance and inventory efficiency<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Since these metrics are inversely related, a <strong>lower DIO typically means higher inventory turnover <\/strong>and vice versa.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can make smarter decisions about purchasing, storage, and sales strategies by tracking both.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-is-days-inventory-outstanding-important\"><strong>Why is Days Inventory Outstanding important?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">DIO is critical to creating a working capital strategy, your profitability, and cash flow performance.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It directly reflects how effectively your business turns inventory into revenue, and where capital may be unnecessarily trapped on your balance sheet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are key reasons why monitoring DIO is crucial for your business:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cash flow management<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Inventory is cash, but in disguise. The longer it sits unsold, the more of your capital is tied up\u2014capital that could be deployed elsewhere in the business<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Profitability and cost efficiency<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Lowering DIO helps your business reduce storage costs, minimize losses from unsold goods, and preserve your margin.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Drive supply chain performance<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">DIO highlights how efficiently products move through your operation, informing smarter procurement, production, and restocking decisions.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Preventing overstocking and stockouts<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A well-optimized DIO helps you strike the right balance, meeting customer demand without overextending your inventory investment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-dio-formula-how-to-calculate-days-inventory-outstanding\"><strong>DIO formula: How to calculate Days Inventory Outstanding<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">First off, a reminder.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Days Inventory Outstanding (DIO) helps you understand how long, on average, your inventory sits before being sold.&nbsp;<\/li>\n\n\n\n<li>A shorter DIO means your business sells products efficiently; a longer one might indicate overstocking or delays.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-1-understand-the-dio-formula\"><strong>Step 1: Understand the DIO Formula<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To calculate DIO, you\u2019ll need:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Average inventory<\/strong><strong><br><\/strong>= (Beginning inventory + Ending inventory) \u00f7 2<strong><br><\/strong>This gives you the typical inventory held during the period.<\/li>\n\n\n\n<li><strong>Cost of Goods Sold (COGS)<\/strong><strong><br><\/strong>The total cost of producing or purchasing the items you\u2019ve sold.<\/li>\n\n\n\n<li><strong>DIO formula<\/strong><strong><br><\/strong>= (Average Inventory \u00f7 COGS) \u00d7 365<strong><br><\/strong>This tells you the number of days it takes, on average, to turn inventory into sales.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-2-gather-your-data\"><strong>Step 2: Gather your data<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s say you&#8217;re managing a retail store. Your data for the year is:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Data <\/strong><strong>p<\/strong><strong>oint<\/strong><\/th><th><strong>Value<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Beginning inventory<\/strong><\/td><td><strong>$50,000<\/strong><\/td><\/tr><tr><td><strong>Ending inventory<\/strong><\/td><td><strong>$70,000<\/strong><\/td><\/tr><tr><td>COGS<\/td><td><strong>$500,000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-3-do-the-math\"><strong>Step 3: Do the math<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Now, let\u2019s break it down.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Calculation <\/strong><strong>s<\/strong><strong>tep<\/strong><\/th><th><strong>Formula<\/strong><\/th><th><strong>Result<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Average <\/strong>i<strong>nventory<\/strong><\/td><td><strong>($50,000 + $70,000) \u00f7 2<\/strong><\/td><td><strong>$60,000<\/strong><\/td><\/tr><tr><td><strong>DIO <\/strong>c<strong>alculation<\/strong><\/td><td><strong>($60,000 \u00f7 $500,000) \u00d7 365<\/strong><\/td><td><strong>43.8 days<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Answer: <\/strong>Your store takes about 44 days to sell its inventory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-4-interpret-the-results\"><strong>Step 4: Interpret the results<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Now ask questions like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Is 44 days good for your industry?<\/li>\n\n\n\n<li>Are there seasonal trends affecting this?<\/li>\n\n\n\n<li>Can you reduce inventory without risking stockouts?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Use your DIO to make smarter ordering, pricing, and promotional decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-days-inventory-outstanding-examples\"><strong>Days Inventory Outstanding examples<\/strong><strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding how DIO plays out in the real world can help you improve your benchmark performance, identify inefficiencies, and support more intelligent capital allocation.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below are three industry-specific examples highlighting how DIO impacts working capital strategy and operational performance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-retail-balancing-turnover-and-availability\">Retail: Balancing turnover and availability<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You manage the finances of a mid-sized clothing retailer and are evaluating stock turnover to support cash flow ahead of a seasonal shift.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Inventory snapshot:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Beginning inventory: $40,000<\/li>\n\n\n\n<li>Ending inventory: $50,000<\/li>\n\n\n\n<li>COGS: $365,000<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>DIO =<\/strong> (45,000 \u00f7 365,000) \u00d7 365 = <strong>45 days<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The strategic insight:<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A DIO of 45 days suggests healthy inventory velocity\u2014balancing demand coverage with capital efficiency.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Here, working capital is used effectively, but it highlights the importance of <strong>tight demand forecasting<\/strong> to avoid markdowns or stockouts as trends shift.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-manufacturing-capital-intensive-operations\"><strong>Manufacturing: Capital-intensive operations<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You run finances for a furniture manufacturer and want to analyze DIO as part of a broader working capital initiative.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Inventory snapshot:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Beginning inventory: $700,000<\/li>\n\n\n\n<li>Ending inventory: $900,000<\/li>\n\n\n\n<li>COGS: $6,500,000<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>DIO<\/strong> = (800,000 \u00f7 6,500,000) \u00d7 365 = 45 days<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The strategic insight:<\/strong><strong><br><\/strong>At 45 days, you\u2019re performing well below the industry average of 60\u2013120 days, signaling a well-optimized production and sales cycle.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This improves liquidity and reduces your need for short-term financing.&nbsp;<\/li>\n\n\n\n<li>However, such performance may also merit a review of stock buffers, ensuring your output can sustain demand peaks or supply disruptions<strong>.<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-e-commerce-velocity-versus-volatility\"><strong>E-commerce: Velocity versus volatility<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You lead finances for an e-commerce electronics retailer that wants to assess the health of its rapid turnover cycle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Inventory snapshot:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Beginning inventory: $25,000<\/strong><\/li>\n\n\n\n<li><strong>Ending inventory: $35,000<\/strong><\/li>\n\n\n\n<li><strong>COGS: $365,000<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>DIO = (30,000 \u00f7 365,000) \u00d7 365 = 30 days<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Strategic insight:<\/strong><br>A 30-day DIO reflects excellent turnover for fast-moving consumer goods.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>While this boosts cash flow and minimizes holding costs, you should ensure <strong>supply chain resilience<\/strong> to prevent stockouts, especially during demand spikes.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Look at technology that can help you with scenario planning, dynamic reordering, or demand-driven inventory models.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-ideal-dio-ratio\"><strong>What is an ideal DIO Ratio?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It depends on what you&#8217;re trying to improve.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is no universal \u201cideal\u201d DIO, but there is the right DIO for your industry, business model, and strategic goals. You need to review what this number tells you about your cash flow, inventory risk, and operational discipline.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-considerations-when-evaluating-your-dio\"><strong>Key considerations when evaluating your DIO:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Capital efficiency:<\/strong> is your current DIO helping free up cash, or tying it up in excess stock?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Customer demand: <\/strong>are you holding enough inventory to meet demand without creating waste?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Operational risk: <\/strong>does your supply chain support your DIO target without introducing disruption risk?<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-typical-dio-benchmarks-by-sector\"><strong>Typical DIO benchmarks by sector:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Retail and consumer goods: 30\u201360 days<\/li>\n\n\n\n<li>Manufacturing: 60\u2013120 days<\/li>\n\n\n\n<li>E-commerce and fast-moving goods: 15\u201345 days<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These benchmarks provide a starting point, but you should go further by comparing yourself to peers and analyzing trends over time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also, consider aligning DIO with broader financial KPIs like Days Sales Outstanding (DSO) and Days Payable Outstanding (DPO) to get a complete picture of your working capital performance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-optimize-dio-with-technology-nbsp\"><strong>Optimize DIO with technology&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll need to use accurate and current data to unlock capital, streamline operations, and accelerate decision-making to get where you need to with DIO.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>That\u2019s where modern inventory management software can come in.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of relying on static spreadsheets and backward-looking reports, look for technology that can integrate real-time inventory tracking, automated DIO calculations, and AI-boosted forecasting into one financial system of record.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The result? Better inventory decisions that directly impact your bottom line.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s how technology can help you optimize DIO:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Automate DIO calculations<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">No more manual number-crunching\u2014look at financial management technology that automates DIO tracking across product lines, locations, and periods, giving you accurate insights instantly.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Track inventory in real time<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Gain complete visibility into inventory levels, movement, and turnover to identify inefficiencies and adjust faster.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Forecast demand using AI<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Predict future demand more precisely by analyzing historical trends, seasonality, and market dynamics, reducing excess stock and preventing shortages.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Integrate inventory and accounting<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">With inventory data fully aligned with the general ledger, seamless financial reporting and more accurate cash flow forecasting are possible.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Drive strategic working capital decisions<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Real-time DIO metrics help you assess where capital is tied up, where to reinvest, and how to align inventory strategy with your broader financial KPIs better.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The bottom line?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With AI-powered tools, you can transform DIO from a passive metric into an active lever for cash flow, profitability, and long-term performance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">DIO is a strategic lever for improving your liquidity, increasing operational efficiency, and helping you make smarter financial decisions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By actively monitoring and optimizing DIO, you\u2019re better positioned to free up capital, reduce waste, and align inventory performance with your business goals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>With financial management tools like Sage Intacct, you can move beyond manual calculations and fragmented data and have a tool at your fingertips that keeps you agile, getting the most out of your finances every day.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From AI-powered demand forecasting to real-time inventory tracking and automated reporting, you can get the control and insight you need to transform inventory into a source of competitive advantage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Take control of your inventory performance. Learn how Sage Intacct can help you unlock working capital and make smarter decisions with AI-driven insight.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Discover how to take the stress out of supply chain and inventory challenges<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Discover five ways analytics can help you avoid having too much or too little inventory.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-850d5010-9047-4c6d-a982-e83b6ce2d349.\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/05\/GettyImages-1169342765-1440x810.jpg\" class=\"single-cta__image\" alt=\"woman at work\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/05\/GettyImages-1169342765-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCash Flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/inventory-management\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tInventory management\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-37928 post type-post status-publish format-standard has-post-thumbnail hentry category-technology-innovation category-trends-insights tag-artificial-intelligence tag-automation tag-distribution tag-erp tag-inventory-management tag-manufacturing tag-sage-x3 tag-supply-chain-management business_type-growing-business industry-distribution industry-wholesale-distribution card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_GB-Trucking-Logistics_0636-1214x810.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_GB-Trucking-Logistics_0636-684x384.jpeg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_GB-Trucking-Logistics_0636-768x512.jpeg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/08\/Mar2025_GB-Trucking-Logistics_0636-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date 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Explore practical applications and how to prepare.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-29442 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-strategy tag-cash-flow tag-staying-competitive business_type-accountants business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-accounts-payable\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-147205362-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-147205362-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-147205362-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-147205362-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-30T09:04:30-04:00\">September 30, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is accounts payable? Definition, examples, and how it works\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-30322 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-strategy-legal-operations tag-accountants tag-accounting-101 tag-boss-your-business tag-cash-flow tag-compliance tag-growing-a-business tag-sage-accounting tag-small-business tag-starting-a-business tag-staying-competitive tag-working-capital business_type-small-business business_type-accountants business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" 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datetime=\"2026-09-30T07:32:53-04:00\">September 30, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tThe ultimate guide to accounts payable reconciliation\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-30327 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-intelligence tag-cash-flow tag-compliance tag-growing-a-business tag-tax business_type-small-business business_type-accountants business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-a-deferred-tax-liability\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1329013231-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-29T12:11:03-04:00\">September 29, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tDeferred tax liability: A practical guide\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-31288 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-boss-your-business tag-cash-flow tag-growing-a-business tag-small-business tag-staying-competitive business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/outstanding-checks-bank-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg\" class=\"card-post__image\" alt=\"A woman on earophones taking notes\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-24T10:28:33-04:00\">September 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat are outstanding checks in bank reconciliation? How to identify, calculate, and manage them\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn what Days Inventory Outstanding (DIO) is and how to calculate it. Discover strategies to improve DIO and optimize inventory management<\/p>\n","protected":false},"author":1398,"featured_media":20296,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"","_yoast_wpseo_keywordsynonyms":"","_yoast_wpseo_primary_category":"43","sage_membership_post_content_type":"article","sage_membership_post_featured_video_id":"","sage_membership_post_video_type":"trailer","sage_membership_post_featured_video_duration":"","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[43],"tags":[299,19],"business_type":[40,41],"lilypad":[],"context":[],"industry":[],"persona":[98,97],"imagine_tag":[442,444,446,433],"coauthors":[591],"class_list":["post-30600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-cash-flow","tag-inventory-management","business_type-small-business","business_type-growing-business"],"sage_meta":{"region":"en-us","author_name":"Ryan Grundy","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1481370237.jpg","imagine_tags":{"442":"Intacct Inventory Management","444":"Intacct Medium Business","446":"Intacct Small Business","433":"Inventory Management"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/30600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1398"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=30600"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/30600\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/20296"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=30600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=30600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=30600"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=30600"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=30600"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=30600"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=30600"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=30600"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=30600"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=30600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}