To calculate the ratio of inventory to sales, you first need to determine the period of total sales. According to product characteristics, the sales cycle can be one week, two weeks or four weeks (1 month). Products with long sales cycle (such as men's wear and shoes) can choose to use a longer calculation cycle, while products with short sales cycle (such as women's wear) can use a shorter calculation cycle.
Extended data
The use and significance of inventory sales ratio.
The main purpose is to evaluate the overall situation of real-time inventory in shops. If the ratio of storage to sales is higher than the reference standard, the inventory is too high; if the ratio of storage to sales is lower than the reference standard, the inventory is too low. Warehouse-to-sales ratio is an early warning index, which is to maintain a certain level through daily sales and distribution, and it is not allowed to be too high or too low.
Once the ratio of deposit to sales is too high or too low, it means that the daily sales and distribution work is not done well. In other words, don't wait until the stock-to-sales ratio reflects the abnormal inventory.
The objective meaning of the ratio of inventory to sales is how many sales cycles the store's current inventory can theoretically continue to maintain, even if there is no distribution to replenish the inventory, on the premise of maintaining the sales volume in the previous cycle.
For example, store A sold 500 pieces last week, and the current inventory is 2,700 pieces, so the stock-to-sales ratio of store A is 2,700 ÷ 500 = 5.4. So far, it can be understood that if Store A maintains the sales volume of last week, the current inventory can theoretically continue to maintain the store sales operation for 5.4 weeks.
References:
Baidu Encyclopedia-the ratio of inventory to sales