Final answer:
Days sales of inventory (DSI) measures the average number of days it takes to sell and replace inventory, differentiating it from other financial metrics like Inventory turnover, Gross margin, and Current ratio.
Step-by-step explanation:
The measure that represents the length of time it takes to acquire, sell, and replace inventory is Days sales of inventory (DSI). This financial ratio indicates how many days on average it takes for a company to turn its inventory into sales. Unlike Inventory turnover, which calculates how often inventory is sold over a period, DSI measures the average number of days the inventory is held before being sold. Gross margin refers to the difference between sales and the cost of goods sold, which represents profitability, not inventory management. The Current ratio is a liquidity measure that evaluates a company's ability to pay short-term obligations, which does not explicitly relate to inventory.