Balance Sheet

Working Capital and Cash Cycle Management

Days Inventory on Hand (DIO)

Days Inventory on Hand measures the average number of days inventory is held before being sold. It reflects the efficiency of inventory management, the accuracy of demand planning, and the alignment between procurement, production, and sales. DIO also highlights how much cash is tied up in stock and the company’s exposure to risks such as obsolescence, write-downs, or operational disruptions caused by stock shortages.