Days Of Supply Calculation is a method used by businesses to measure their sales and inventory levels. This calculation uses the total number of units sold in a given period of time and divides it by the average days of supply on hand for that same period. This figure gives businesses a clearer picture of their current sales versus inventory levels, helping them make more informed decisions about stocking and pricing strategies. By understanding how much stock they currently have, companies can plan ahead and ensure they don’t run out of stock unexpectedly or overstock and take a profit hit. With proper budgeting and data analysis, you can use this tool to ensure your business is running as efficiently as possible.