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Finance / July 19, 2018 / Alicia Franklin

The days sales of inventory value (DSI) is a financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory (including goods that are a work in progress, if applicable) into sales. Generally, a lower (or shorter) DSI is preferred, but it is important to note that the average DSI varies from one industry to another.

Interest is the charge against the use of money by the borrower. The same is profit earned by the lender of money. The amount which is invested in a bank in order to earn interest is called principal. The interest rate is normally expressed in percentage and represents the dollar interest earned per $100 of principal in a specific time, usually a year. Simple interest and compound interest are the two types of interest based on the way they are calculated.

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