Friday, May 31, 2019

How to Analyse a Company's Inventory

Inventory represents products a company possesses on its premises or goods consigned to third parties. Inventory plays an important role in the smooth functioning of a company's business since it acts as a buffer between the production and completion of customers' orders.

... Inventory represents a current asset since a company typically intends to sell its finished goods within a short amount of time, typically a year. Inventory has to be physically counted or measured before it can be put on a balance sheet. 

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