Inventory Sales Ratio

Hannah BlalockMacro Economic Indicators


What is it?

Total Business Inventory to Sales Ratio (TBIS) is the monthly ratio of inventory (end of month value) to monthly sales. These ratios can be looked at as indications of the number of months inventory that are on hand. i.e. An inventory/sales ratio of 2.5.`

Who is interested?

Analysts, High-level executives, owner operators

What does it tell me?

High levels of inventory could mean a lack of demand or oversupply signaling a weakening economy. Generally, TBIS levels over 1.42 have signaled weakening economies, but that is not the rule.

Example: A user wants to see the inventory to sales ratio for the country. They would enter TBIS.USA.

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