Finished goods ratio is an inventory KPI that expresses finished goods inventory as a proportion of a defined inventory base, most commonly total inventory. It shows how much inventory is held as completed product rather than as raw material, components, or work in process.
A common form is finished goods inventory divided by total inventory, expressed as a percentage. The calculation may use value, quantity, weight, or another consistent measure, so the basis should be defined before comparing sites, periods, or systems.
In manufacturing systems, the finished goods ratio is used in production planning, inventory management, ERP reporting, and KPI frameworks such as ISO 22400-related operations metrics. It can help indicate inventory mix, demand imbalance, excess stock, or classification issues. It does not directly measure inventory accuracy; accuracy still depends on correct transactions, cycle counts, lot or serial control, and consistent status management across ERP, MES, and WMS records.
Finished goods should not be confused with physically complete items that are still on hold, under inspection, rejected, quarantined, or otherwise not available under the site’s inventory rules. Those status distinctions matter when the ratio is used for operational or quality-sensitive reporting.