Inventory

Goods and materials not yet sold

In detail

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.

Example

Sales up 5% while inventory rises 30% is a signal worth examining.

Related terms

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For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.