I'm trying to understand how to calculate stock to flow. I know it's a ratio but I'm not sure exactly what numbers to use or how to apply the formula correctly.
6 answers
QuasarStorm
Sun Jan 05 2025
The Stock-to-Flow ratio serves as a crucial metric in assessing an asset's scarcity.
Dario
Sun Jan 05 2025
The denominator is the flow, which signifies the annual production rate of the asset.
Paolo
Sun Jan 05 2025
By dividing these two values, investors can gain insights into how scarce the asset is.
GyeongjuGrace
Sun Jan 05 2025
This ratio helps investors understand the potential for inflation in an asset.
CloudlitWonder
Sun Jan 05 2025
It is calculated through a straightforward division process.