1. Inventory Management
  2. Costs & Value

Inventory Holding Costs as Percentage of Gross Sales


This KPI measures the proportion of gross sales that's consumed by the costs of holding inventory. A higher percentage could indicate inefficiencies or high carrying costs.


(Inventory Holding Costs / Gross Sales) x 100


If holding costs are $10,000 and gross sales are $200,000, the percentage is 5%.