Raw materials inventory
Raw materials inventory net of reserves.
Worked example · a round-number company
Raw materials inventory$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 materials awaiting production.
Keep in mind
- Do not add this detail to total inventory.