Inventory Sales Ratio is a measure of how quickly a company moves its inventory. It compares the dollar value of sales to the dollar value of total inventory, providing a snapshot of how efficiently and effectively a business is managing its stock. Put simply, it’s a ratio that lets you know how often inventory is being sold and replaced. Understanding this number can help businesses make decisions on when to order new stock and improving cash flow. Knowing your Inventory Sales Ratio is an essential part of successful supply chain management and store efficiency.