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Golden hourglass filled with coins, representing average age of inventory in business

Understanding the Average Age of Inventory and Its Importance in Financial Analysis

April 7, 2024 FinanceFacts101 Business Strategy

What Is the Average Age of Inventory? The term “average age of inventory” (AOI), also known as “days’ sales in inventory,” signifies the average number of days it takes for a business to sell its inventory. This essential metric is widely used by financial analysts to evaluate a company’s inventory

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