Definition

The stock transformation rate corresponds to the ratio between sales and stockist distributions.

It is a leading indicator for monitoring stock performance.

Calculation

Stock conversion rate = DNV / DNS or DVV / DVS .

Example

A DNV / DNS ratio of 70% means that on average 7 out of 10 stockist pharmacies are selling.

Interpretation

The DNV / DNS ratio gives the following information: among the stockist pharmacies, how many are actually selling?

The DVV / DVS ratio gives the same information but weights pharmacies by their sales potential.

Terminology

The stock conversion rate can be translated in English as "Stock Transformation Rate".

Subscription

Sales & Marketing Advanced subscription (module Stock Evolution )

Did this answer your question?