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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:

  1. Calculate the days sales of inventory (DSI) for both Company X and Company Y.
  2. Compare the efficiency of inventory turnover between the two companies based on their DSI values.
  3. Discuss potential implications of the differences in DSI values between Company X and Company Y.

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