1. Inventory Management
  2. Costs & Value

Inventory Holding Costs as Percentage of Inventory Value

Percentage

Represents the proportion of inventory value consumed by holding costs. A high percentage might signal that inventory management strategies need revisiting.

Formula

(Inventory Holding Costs / Total Inventory Value) x 100

Example

If holding costs are $10,000 and the total inventory value is $200,000, the percentage is 5%.