What is the Stock to Sales Ratio?
he ratio of stock available for sale, versus the stock that has been sold.
The stock to sales ratio will help you keep your inventory at optimum levels. If you have too much inventory, you are tying up capital that could be better spent elsewhere. Conversely, if you have too little stock, you may run out, which is the number one thing not to do for retailers.
How to Compute the Stock to Sales Ratio?
To get your stocks to sale ratio, simply divide the units available on a time period by the units sold on the same time period.
Stock to Sales Ratio = Units available ÷ Units sold