## Stock to Sales Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
Stock to Sales Ratio = Inventory Value/Sales Value
STSR = IV/SV
This formula uses 3 Variables
Variables Used
Stock to Sales Ratio - Stock to Sales Ratio is a financial metric used in retail and inventory management to assess the efficiency of inventory turnover.
Inventory Value - Inventory Value refers to the total monetary worth of the goods or products held by a company for the purpose of resale or use in production.
Sales Value - Sales Value refers to the total monetary worth of goods or services sold by a company during a specific period.
STEP 1: Convert Input(s) to Base Unit
Inventory Value: 505 --> No Conversion Required
Sales Value: 50 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
STSR = IV/SV --> 505/50
Evaluating ... ...
STSR = 10.1
STEP 3: Convert Result to Output's Unit
10.1 --> No Conversion Required
10.1 <-- Stock to Sales Ratio
(Calculation completed in 00.004 seconds)
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## Credits

Created by Aashna
IGNOU (IGNOU), India
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Verified by Surjojoti Som
Rashtreeya Vidyalaya College of Engineering (RVCE), Bangalore
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## Stock to Sales Ratio Formula

Stock to Sales Ratio = Inventory Value/Sales Value
STSR = IV/SV

## What is Stock to Sales Ratio ?

Stock to Sales Ratio measures the pace at which a company is liquidating its stock. It involves comparing the value of inventory to sales within a specific period. The average value of inventory held by the company during the period can be calculated by taking the beginning inventory value plus the ending inventory value divided by two. Total sales revenue generated by the company during the same period, excluding any returns, discounts, or allowances. The resulting ratio indicates how many times the average inventory is sold or turned over during the period. A higher ratio generally indicates that inventory is being sold more quickly relative to the amount held in stock, while a lower ratio suggests that inventory turnover is slower. Overall, the stock-to-sales ratio provides valuable insights into inventory turnover efficiency, helping businesses optimize inventory levels, minimize carrying costs, and improve profitability.

## How to Calculate Stock to Sales Ratio?

Stock to Sales Ratio calculator uses Stock to Sales Ratio = Inventory Value/Sales Value to calculate the Stock to Sales Ratio, Stock to Sales Ratio measures the relationship between the amount of inventory a company holds (stock) and the amount of inventory it sells (sales) over a specific period, usually expressed as a ratio or percentage. Stock to Sales Ratio is denoted by STSR symbol.

How to calculate Stock to Sales Ratio using this online calculator? To use this online calculator for Stock to Sales Ratio, enter Inventory Value (IV) & Sales Value (SV) and hit the calculate button. Here is how the Stock to Sales Ratio calculation can be explained with given input values -> 10.1 = 505/50.

### FAQ

What is Stock to Sales Ratio?
Stock to Sales Ratio measures the relationship between the amount of inventory a company holds (stock) and the amount of inventory it sells (sales) over a specific period, usually expressed as a ratio or percentage and is represented as STSR = IV/SV or Stock to Sales Ratio = Inventory Value/Sales Value. Inventory Value refers to the total monetary worth of the goods or products held by a company for the purpose of resale or use in production & Sales Value refers to the total monetary worth of goods or services sold by a company during a specific period.
How to calculate Stock to Sales Ratio?
Stock to Sales Ratio measures the relationship between the amount of inventory a company holds (stock) and the amount of inventory it sells (sales) over a specific period, usually expressed as a ratio or percentage is calculated using Stock to Sales Ratio = Inventory Value/Sales Value. To calculate Stock to Sales Ratio, you need Inventory Value (IV) & Sales Value (SV). With our tool, you need to enter the respective value for Inventory Value & Sales Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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