![]() ![]() It’s a key indicator of inventory management efficiency, which is important for financial analysts and investors evaluating a company’s performance. Inventory Days on Hand is a metric of how many days a business takes to sell through its inventory. View our List of the Top 30 Warehouse KPI Metrics Inventory Accuracy: Knowing your inventory accuracy is essential for making informed business decisions, avoiding stockouts, reducing excess inventory, and ultimately maximizing profits.Inventory Turnover Rate: Knowing your inventory turnover rate is crucial for efficient inventory management and maintaining healthy cash flow.The lower the number of days, the better, as it means you have less inventory tied up in your business and can make room for new products or reduce your costs. This number represents the days it would take to sell your inventory based on your current sales rate. Once you have entered these values into the DOH Inventory calculator, it will give you the number of days of inventory you have on hand. Typically, this is done yearly, so you will use 365 days. You can calculate this by subtracting the start date from the end date and adding one. Days in the Accounting Period: This is the number of days in the accounting period.You can find this information on your income statement. Cost of Goods Sold: This is the total cost of the items you sold during the accounting period.You can calculate this by adding up the value of your inventory at the beginning and end of the period and dividing it by two. Average Inventory: This is the average value of your inventory over the accounting period.To use the calculator, you need to enter three key pieces of information: A Days on Hand (DOH) Inventory calculator can help determine how long your inventory will last based on your current sales and stock levels.
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