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You are analyzing the days sales of inventory (DSI) for two manufacturing companies, Company X and Company Y, for the fiscal year 2023. Company Cost
You are analyzing the days sales of inventory (DSI) for two manufacturing companies, Company X and Company Y, for the fiscal year 2023.
Company | Cost of Goods Sold (COGS) (in millions) | Average Inventory (in millions) | Days Sales of Inventory (DSI) |
Company X | $150 | $30 | 45 |
Company Y | $200 | $40 | 60 |
Requirements:
- Calculate the days sales of inventory (DSI) for both Company X and Company Y.
- Compare the efficiency of inventory turnover between the two companies based on their DSI values.
- Discuss potential implications of the differences in DSI values between Company X and Company Y.
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