Afirm has $100 of average inventory, operating profit of $500 and sales of $1,500. its days in inventory is:

Days in invetory meDays in Inventory measures the average number of days it takes to turn inventory to sales.
To get the days in inventory the formula is :Days in Inventory = 365/Inventory Turnover
To get the Inventory Turnover the formula is : Inventory Turnover Ratio= Cost of Goods/ [(Beginning Inventory Balance + Ending Inventory Balance)/2]
Beginning Inventory Balance: $100Ending Inventory Balance: $500Cost of Goods/Sales: $ 1500
Inventory Turnover Ratio = 1500/ [(100+500)/2]Inventory Turnover Ratio = 1500/300Inventory Turnover Ratio = 5
Days In Inventory = 365/5Days In Inventory = 73

73 days