With 60 to 90 days sales in inventory, your company's ratio is about average for distributors, and you generally should have sufficient inventory on hand to fill sales, without excessive inventories.
Still, there is considerable variation: companies selling a limited number of standard goods tend to have fewer days sales in inventory, because they can match their production to sales. Companies selling specially ordered goods, on the other hand, tend to have relatively more days sales in inventory. Food distributors have fewer days sales in inventory because their supplies will spoil if they are kept too long, while steel fabricators can stockpile for a long time.
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See the Definition for a discussion of other parties that are interested in your days sales in inventory ratio.
You should also look at the factors that might be making your days sales in inventory higher than it should be for a company in your industry. Such factors include: (1) products purchased regardless of whether they are or will be ordered, because of poor coordination between sales and purchasing; (2) fewer sales and therefore more inventory than anticipated, because of an unforeseen industry downturn; (3) a seasonal buildup in inventory (increased inventory in anticipation of Christmas sales, for example), that will be worked off as seasonal sales are shipped; (5) stocks of obsolete merchandise; and the like.
