Glossary
Glossary
Glossary
Days of Inventory on Hand (DOH)
Days of Inventory on Hand (DOH)
Definition
The average number of days a company holds inventory before selling it. It is calculated by dividing the average inventory by the cost of goods sold, then multiplying by the number of days in the period. Lower DOH indicates efficient inventory management.
The average number of days a company holds inventory before selling it. It is calculated by dividing the average inventory by the cost of goods sold, then multiplying by the number of days in the period. Lower DOH indicates efficient inventory management.
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