(Click on image to enlarge)
Sales
The combined value of distributive trade sales and manufacturers’ shipments for September is adjusted for seasonal and trading day differences but not for price changes. It was estimated at $1,881.2 billion, up 0.3 percent (±0.2 percent) from August 2024 and was up 0.5 percent (±0.3 percent) from September 2023.
Inventories
Manufacturers’ and trade inventories for September, adjusted for seasonal and trading day differences but not for price changes, were estimated at an end-of-month level of $2,587.1 billion, up 0.1 percent (±0.1 percent)* from August 2024 and were up 2.2 percent (±0.3 percent) from September 2023.
Inventories/Sales Ratio
The total business inventories/sales ratio based on seasonally adjusted data at the end of September was 1.38. The September 2023 ratio was 1.35.
Notes:
The Inventory to Sales Ratio metric measures the amount of inventory you are carrying compared to the number of sales orders being fulfilled. A lower ratio indicates that a company is effectively converting inventory into sales, while a higher ratio suggests excess stock or potential issues with product demand.(Click on image to enlarge)
A sales ratio of 1.34 means that for every dollar of sales, investors are paying $1.34. The amount of inventory is typically determined by the lead times to make the product or how long does it take to get it from China the least costly way (container loads by ship).A P/S ratio of 0.75 to 1.5 is regarded as strong buys. Those having a PSR greater than three are deemed high-risk. There is risk to long lead times such as a container going into the ocean. This does happen.Manufacturing & Trade Inventories & Sales – More By This Author:Access To Medical Care: Right Or Privilege? United States’ Fiscal Policy In A Global Context Housing Affordability In The U.S.
Manufacturing And Trade Inventories And Sales: September 2024
