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Sales to Inventory Calculator
Sales to Inventory Calculator
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This calculator will compute a company's sales to inventory turnover ratio, given the total value of the products in the company's inventory and its total sales.
Small values of the sales to inventory ratio can indicate that a company has overestimated its sales, has slow-moving goods, or has an overstocking problem. Large values can indicate that a company has an inadequate investment in inventory, which may cause lost sales or poor customer service.
Please supply the necessary parameter values, and then click 'Calculate'.
Inventory:
The total value of all of the products that a company has in inventory.
Sales:
The total amount of a company's sales.
Formulas
The following formula is involved in the calculation of sales to inventory ratios:
Sales to inventory turnover ratio:
where
S
is a company's total sales and
I
is the total value of the company's inventory.
References
The following references can be used to cite this sales to inventory calculator:
Soper, D.S. (2017) "Sales to Inventory Calculator (Online Software)", http://www.danielsoper.com/fincalc.
Bragg, S. (2012). "Business Ratios and Formulas: A Comprehensive Guide", Hoboken, NJ: John Wiley & Sons.
Siegel, J. and Shim, J. (1997). "Schaum's Quick Guide to Business Formulas", New York, NY: McGraw-Hill.
Related Calculators
The following financial calculators are related to this sales to inventory calculator, and may be useful for your research:
Asset Utilization (Turnover) Calculators
Fixed Asset Turnover Calculator
Sales to Accounts Receivable Calculator
Sales to Cash Calculator
Sales to Working Capital Calculator
Total Asset Turnover Calculator
Inventory and Supply Chain Management Calculators
Economic Order Quantity (EOQ) Calculator
Inventory Reorder Point Calculator
Sales to Accounts Payable Ratio Calculator
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