1. Inventory Management
  2. Costs & Value

Inventory Holding Costs as Percentage of Gross Sales

Percentage

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.

Formula

(Inventory Holding Costs / Gross Sales) x 100

Example

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