days sales in inventory which is a financial metric, reveals how a company takes time to convert its inventory into sales. This is a good tool to calculate the inventory efficiency and sales performance. The lower the DSI the faster the inventory turns and the more cash flow, and the higher the DSI may mean that the inventory is moving slower or the stock is being overstocked. DSI is actively monitored by businesses to keep an eye on inventory, thereby cut huge costs by making purchases at the right time when it is needed, and reducing holding costs. This practice is seen across retail and manufacturing industries.