Definition of imply for English Language Learners. : 1  to express (something) in an indirect way : to suggest (something) without saying or showing it plainly. : 2  to include or involve (something) as a natural or necessary part or result.
It is calculated as: Cost of Goods Sold Ã· Average Inventory. Or. Sales Ã· Inventory. Usually, a higher inventory turnover ratio is preferred, as it indicates that more sales are being generated given a certain amount of inventory.
Measure the amount of inventory you are carrying compared to the number sales order being fulfilled. Overview. The Inventory to Sales Ratio metric measures the amount of inventory you are carrying compared to the number of sales orders being fulfilled. Calculate inventory to sales using the following formula: (Inventory value $) Ã· (Sales value $)