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Days Inventory Held

oboloo Glossary

Days Inventory Held

Days Inventory Held (DIH) is a metric used to measure how quickly inventory turns into sales. This metric shows how long it takes a company to sell its inventory from the time it was purchased. In other words, DIH gives you insight into how efficiently your business can turn its stock into cash. By tracking this ratio, businesses can identify areas for improvement and ensure that their inventory remains fresh and up-to-date. Ultimately, having a good understanding of DIH helps companies maximize their profits and minimize their losses.

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