average daysÂ’ inventory on hand

average daysÂ’ inventory on hand definition - finance
The number of days in the year divided by inventory turnover, which is cost of goods sold divided by average inventory. The ratio shows how many times inventory turns over during a year, which indicates how vibrant sales are.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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