How to calculate Stock-to-Sales Ratio

Formula

Stock-to-sales ratio = inventory at period end ÷ sales for the period (in the same unit: units or value)

SQL query

This example assumes: monthly_inventory(month date, ending_units numeric, units_sold numeric). It is written in PostgreSQL syntax; date functions differ slightly in MySQL, BigQuery and SQLite, and your column names will differ from these.

SELECT month,
       ending_units,
       units_sold,
       ending_units / NULLIF(units_sold, 0) AS stock_to_sales_ratio
FROM monthly_inventory
ORDER BY month;

Common mistakes that make Stock-to-Sales Ratio wrong

• Inventory and sales must be in the same unit (both units or both value at the same cost basis).
• A month with very low sales produces a huge ratio; read it with the surrounding months.
• Seasonal items need a seasonal comparison, not the annual average.

Ask for Stock-to-Sales Ratio in plain English

Instead of writing the query yourself, you can type the question. SchemaChat turns it into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. It does not replace your judgement about the definition: check that the query matches the formula your business uses.

• What was our stock-to-sales ratio for each month this year?
• Which months had more than two months of stock on hand?