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INDUSTRY PULSE: Higher shipments reduce inventory-to-shipment ratio

OTTAWA, Ont. -- December's substantial gain in shipments was enough to pull down the inventory-to-shipment ratio to...


OTTAWA, Ont. — December’s substantial gain in shipments was enough to pull down the inventory-to-shipment ratio to 1.27 from 1.29 in November.

The volatility of shipments in recent months has also contributed to some flux in the ratio. Overall, the downward trend for the inventory-to-shipment ratio has been maintained.

The inventory-to-shipment ratio is a key measure of the time, in months, that would be required in order to exhaust inventories if shipments were to remain at their current level.


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