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Inventory-to-sales

How a wonky government stat can help predict where the economy is headed

by Justin Ho
Oct 15, 2024
The inventory-to-sales ratio provides a glimpse at how fast inventories are turning over. If a sector’s ratio is elevated, that can be a sign that it will slow down -- or cut prices -- in the near future.
Retailers' product turnover ratio can tell us a lot about where the economy is headed.
Brandon Bell/Getty Images
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