The days to sell measure equals 365 divided by the receivables turnover ratio.

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The days to sell measure, often referred to as the inventory turnover days or days inventory outstanding (DIO), is calculated by dividing 365 by the inventory turnover ratio, not the receivables turnover ratio. The receivables turnover ratio is used to calculate the days sales outstanding (DSO), which measures the average number of days it takes a company to collect payment after a sale has been made.

The Days to Sell Measure Equals 365 Divided by the Receivables