Inventory Days On Hand Calculation is a metric used to measure the average number of days it takes for a business to sell its stock of products. It helps businesses gauge the time needed for their inventory turnover, enabling them to optimize their purchasing decisions and manage their stocks more effectively. It is calculated by dividing the Ending Inventory of a given period by the Average Daily Cost of Goods Sold (COGS) during that period. This figure can give businesses a snapshot of how inventory-intensive their operations are, helping them adjust their supply chain strategy accordingly. So if companies want to keep their inventories in check, they should definitely be making use of Inventory Days On Hand Calculation.