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Stock to Sales Ratio Formula

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Stock to Sales Ratio is a financial metric used in retail and inventory management to assess the efficiency of inventory turnover. Check FAQs

STSR = \frac{IV}{SV}

STSR - Stock to Sales Ratio?IV - Inventory Value?SV - Sales Value?

Stock to Sales Ratio Example

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With units

Only example

Here is how the Stock to Sales Ratio equation looks like with Values.

Here is how the Stock to Sales Ratio equation looks like with Units.

Here is how the Stock to Sales Ratio equation looks like.

10.1 = \frac{505}{50}

10.1 = \frac{505}{50}

10.1 = \frac{505}{50}

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Stock to Sales Ratio Solution

Follow our step by step solution on how to calculate Stock to Sales Ratio?

FIRST Step Consider the formula

STSR = \frac{IV}{SV}

Next Step Substitute values of Variables

∴

STSR = \frac{505}{50}

Next Step Prepare to Evaluate

∴

STSR = \frac{505}{50}

LAST Step Evaluate

∴

STSR = 10.1

Stock to Sales Ratio Formula Elements

Variables

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.

Symbol: STSR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Stock to Sales Ratio

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.

Symbol: IV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Inventory Value

Sales Value

Sales Value refers to the total monetary worth of goods or services sold by a company during a specific period.

Symbol: SV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Sales Value

Other formulas in Cost Accounting category

Go Material Cost Variance

MCV = (SQAO \cdot STP) - (ACQ \cdot ACP)

Go Material Price Variance

MPRV = ACQ \cdot (STP - ACP)

Go Material Quantity

MQ = STP \cdot (SQ - ACQ)

Go Revised Standard Quantity

RSTQ = (\frac{SQM}{TSQ}) \cdot TAQ

How to Evaluate Stock to Sales Ratio?

Stock to Sales Ratio evaluator uses Stock to Sales Ratio = Inventory Value/Sales Value to evaluate 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 evaluate Stock to Sales Ratio using this online evaluator? To use this online evaluator for Stock to Sales Ratio, enter Inventory Value (IV) & Sales Value (SV) and hit the calculate button.

FAQs on Stock to Sales Ratio

What is the formula to find Stock to Sales Ratio?

The formula of Stock to Sales Ratio is expressed as Stock to Sales Ratio = Inventory Value/Sales Value. Here is an example- 10.1 = 505/50.

How to calculate Stock to Sales Ratio?

With Inventory Value (IV) & Sales Value (SV) we can find Stock to Sales Ratio using the formula - Stock to Sales Ratio = Inventory Value/Sales Value.

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Stock to Sales Ratio Formula

Stock to Sales Ratio Example

Stock to Sales Ratio Solution

Stock to Sales Ratio Formula Elements

Other formulas in Cost Accounting category

How to Evaluate Stock to Sales Ratio?

FAQs on Stock to Sales Ratio

Variable Name