1. Inventory Management
  2. Stock Levels & Turnover

Inactive Inventory as Percentage of Inventory Value


Measures the value of items that have not been sold or used for a long period, indicating potential dead stock that ties up capital.


(Value of Inactive Inventory / Total Inventory Value) x 100


If the value of inactive stock is $50,000 out of a total inventory of $500,000, the rate is 10%.