Days Inventory on Hand (DIOH) is a measure of how quickly a company can move its inventory from the point of production to sale. It helps managers budget for stock levels and plan for future sales. Essentially, knowing your DIOH gives you insight into how effectively your company is managing its supply chain and cash flow. A low DIOH indicates that you have a good handle on your inventory stocking management, while a higher number shows that there may be room for improvement. With this information, businesses can make informed decisions to improve their bottom line.