SPY & Inventories to Sales Ratio
The ratio of total business inventories to total business sales, measuring inventory health across the economy.
SPY Price
Inventories/Sales Ratio
What It Measures
The Total Business Inventories to Sales Ratio measures how many months of sales are currently held in inventory across all U.S. businesses. It covers: - Manufacturing inventories - Wholesale trade inventories - Retail trade inventories Formula: Inventory/Sales Ratio = Total Inventories / Total Monthly Sales A ratio of 1.4 means businesses hold 1.4 months worth of sales in inventory.
Why It Matters
**Economic Cycle Indicator**: Rising ratios often precede recessions as demand falls but inventories remain. **Supply Chain Health**: Shows whether businesses are overstocked or understocked. **Production Signal**: High inventories may lead to production cuts; low inventories may drive restocking. **GDP Impact**: Inventory changes are a volatile component of GDP growth.
Key Levels
Data Sources
SPY: S&P 500 ETF daily OHLCV data (1993-02-02 to 2026-01-22)
Inv/Sales: ISRATIO - Inventories to Sales Ratio from U.S. Census Bureau
Units: , ,