Inventory Days on Hand (DOH)

DOH is calculated by dividing average inventory value by the cost of goods sold per day. A lower DOH means inventory is converting to revenue quickly; a higher DOH means capital is sitting on shelves or in warehouses rather than generating returns. Rising DOH across the industry is a signal of a broader demand-matching problem: brands are producing or stocking inventory that isn't moving at the expected pace, often because the right products aren't reaching the right shoppers at the right moment.