Goods and materials not yet sold
Inventory covers finished goods, work in progress and raw materials that have not been sold. Sold, it turns into cash; unsold, it turns into discounts or write-offs. When inventory grows faster than sales, it raises the question of overproduction or slowing demand. What counts as a healthy level differs completely by industry.
Sales up 5% while inventory rises 30% is a signal worth examining.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.