Average Days Inventory Measures (also known as Average Inventory Turnover) is a measure of how quickly inventory is being sold and replaced by a company. It indicates the efficiency of a business when it comes to stocking products and fulfilling customer orders. The average days in inventory measure is calculated by taking the total number of days of inventory on hand divided by the cost of goods sold per day. This ratio helps businesses identify which products are selling quickly, and which ones are not, allowing them to adjust their stock levels accordingly in order to maximize profits and efficiency.