Calculate Inventory Days is a business metric that measures the average number of days a company holds inventory before selling it. It provides a valuable insight into the health of a company’s stock management, indicating the amount of time taken to move inventory from purchase order to sale. Understanding this metric helps businesses ensure they have enough stock on hand to meet customer needs without creating an overstock situation and wasting resources. Knowing and optimizing your company’s inventory days is essential for effective cost control and profit optimization.