A partial-differential eigenvalue equation for the density displacement fie
lds associated with electronic excitations is derived in the framework of d
ensity-functional theory. Our quantum fluid-dynamical approach is based on
a variational principle and the Kohn-Sham ground-state energy functional, u
sing only the occupied Kohn-Sham orbitals. It allows for an intuitive inter
pretation of electronic excitations in terms of intrinsic local currents th
at obey a continuity equation. We demonstrate the capabilities of this none
mpirical approach by calculating the photoabsorption spectra of small sodiu
m clusters. The quantitative agreement between theoretical and experimental
spectra shows that even for the smallest clusters, the resonances observed
experimentally at low temperatures can be interpreted in terms of density
vibrations.