Excess Stock & DIO

DIO is stock on hand divided by average daily demand from the last 6 months. Set your healthy stock cover in days, run the analysis, and see which items sit above it and how much cash that excess represents.

Flag thresholds

Days of stock on hand per item: up to green is healthy, up to amber needs review, beyond that is red. The same green limit defines excess stock — anything above it counts as excess.

Green up to (days)Amber up to (days)Red: above 90 days