Inventories, net
Inventory expected to be sold or consumed within the operating cycle, net of valuation and LIFO reserves.
Worked example · a round-number company
Inventories, net$1.0B÷Total assets$10.0B=Share of assets10.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↕Neither higher nor lower is better. Shows capital tied up in goods awaiting sale or use.
Keep in mind
- Inventory valuation methods and obsolescence can limit comparability; inventory is not immediately available cash.