The Average Days In Inventory Ratio (known as the ADIR) is a measurement tool used by businesses to assess the efficiency of their inventory management processes. By calculating the average number of days a business’s stock sits idle, the ADIR can provide valuable insights into how effectively the company is purchasing and managing its inventory. The lower the ratio, the better — a higher ratio indicates that goods are sitting on shelves for too long, leading to more significant costs for the business. It’s time to understand your inventory and make sure it’s working for you!