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- DIO = Days inventory outstanding
Defination / Uses
DIO, is a measure of how snappily a company can turn its force into deals. The days force outstanding description is the average time it'll take for the company to deal its force to its accounts or guests.
Still, it means that it has a actually effective force operation system, If the company's DIO is shorter than its peers. Hence, it can consider buying added stock to increase its profit. Also, it's vital to make sure the DIO isn't too short as this might create stock dearth's.