stocktosales
StocktoSales is a metric used in inventory management and retail analytics to describe the relationship between a retailer's stock levels and its sales. The term, sometimes written as stock-to-sales, measures how much inventory is held relative to net sales and is used to assess whether stock levels are aligned with demand.
Calculation: The basic form is Stock-to-Sales Ratio = Ending Inventory / Net Sales for a period. Net Sales
Interpretation: A high stock-to-sales ratio suggests a comparatively large inventory relative to sales, which can indicate
Uses and applications: Retail planners use the metric to guide replenishment, open-to-buy planning, and safety stock
Limitations: Stock-to-sales does not account for product mix, seasonality, promotions, or markdown cycles. It can be