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Retail & Allocation lesson

Stock-to-sales

One month, by category: the stock at the start, against the month's sales.

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About 5–10 minutes · no sign-up needed

The idea

One month, by category: the stock at the start, against the month's sales:

Formulas

Opening stock ÷ Sales

Key points

Stock-to-salesHow many months of sales the stock at the start of the month could cover.
Work it outDivide opening stock by the month's sales, both at retail value.
Read it3.0 means three months' worth. Planners set a target ratio for each category, and buy to it.

Stock-to-sales is how planners decide how much stock to hold at the start of each month.

Practice

Try each one in your head first, then open the answer.

1. What is the stock-to-sales ratio for Chargers?
$45,000 ÷ $15,000 = 3.0
2. In D2, work out Audio's stock-to-sales ratio.
=B2/C2
3. Tap the category with the highest stock-to-sales ratio: the most stock tied up for its sales.
Screen guards hold 4 months of stock.
4. Planners want a stock-to-sales ratio of 2.0 for Chargers, but it's 3.0. What should they do?
Order less for next month

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed