In the business world, Inventory As A Percentage Of Sales (or IAPoS) is a key metric that enables you to understand just how much stock your company is keeping in relation to how much it’s selling. Put simply, it’s the ratio of inventory cost to total sales. To work out IAPoS, divide your average inventory value by your annual sales and multiply the result by 100. By calculating this number, you can get a good idea of how efficiently your business is stocked and make changes where needed to help improve overall performance. Knowing your IAPoS means better-informed decisions when it comes to managing stock, marketing products and forecasting future demand. Put it to use and you’ll start seeing positive results!