Average Days' Inventory on Hand(redirected from Average Days Inventory on Hand)
Average Days' Inventory on Hand
A measure of a company's sales strength. One calculates the average days' inventory on hand by dividing 365 days in a year by the cost of goods sold and dividing the result by average inventory. This indicates how often a company must replenish its inventory, which in turn shows how long it takes to sell its inventory.
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