Financial Statements
Inventory
Goods a company has on hand to sell or use in production.
Also called: stock on hand
What it means
Inventory includes raw materials, work in progress, and finished goods that a company holds for sale or production. Inventory is an asset, but it may lose value if it becomes outdated, damaged, or slow-moving.
Why it matters
Inventory trends can reveal demand strength, supply chain problems, or pricing pressure.