answersLogoWhite

0

A stock to sales ratio determines the relationship between how much stock you have and how much you are selling. Ideally this ration should be as low as possible without being so low that your store appears empty.

User Avatar

Wiki User

10y ago

What else can I help you with?

Related Questions

How do you calculate stock turnover ratio?

stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory


How do you work out a gross profit percentage?

gross profit divided by sales Sales = 250000 Cost = 100000 gross profit = 150000 150000 / 250000 = 60%


How do I measure the growth when it comes to stock investing?

You have to see if the stock is growing in both sales and earnings. The price-to-earnings ratio is the best-known valuation gauge.


If you have a stock to sales ratio of 2 how many months of supply do you have how many weeks of supply?

2 months and 8 weeks


What company does THO represent on the stock exchange?

THO stands for THOR industries. THO represents NASDAQ on the stock exchange. Their financial sales are up to 3.4 billion, 12% sales regrowth, 14% income regrowth and zero debt - equity ratio.


What is the negative impact on good inventory turnover ratio?

An unusually high Inventory Turnover Ratio compared to Industry could mean a Business is losing sales because of inadequate stock on hand.


What is stock in trade ratio?

The stock in trade ratio, also known as the inventory turnover ratio, measures how efficiently a company manages its inventory by comparing the cost of goods sold (COGS) to the average inventory over a specific period. A higher ratio indicates that a company is selling its inventory quickly, suggesting effective inventory management and strong sales performance. Conversely, a low ratio may indicate overstocking or weak sales. This metric helps businesses assess their inventory levels and make informed decisions about purchasing and production.


How do you calculate the Contribution margin ratio?

sales-variable cost= contribution


How do you calculate a direct cost of sales in a business plan?

Cost of sales = opening stock + purchases-closing stock Cost of sales = opening stock + purchases-closing stock


What is contribution margin ratio?

contribution margin ratio = (sales - variable costs) / Sales


How calculate expense-to-sales ratio?

sales to expense ratio should be under 10% of your net sales, on a monthly basis


What is the average expense to sales ratio for a sales representative?

The average expense to sales ratio for Pharmaceutical sales representative is around 8 to 12 % in Pakistan