1. Inventory Management
  2. Costs & Value

Average Inventory Value


This indicates the average monetary value of inventory held over a period. Tracking this KPI can help in understanding capital tied up in inventory and the need for effective inventory management.


(Beginning Inventory Value + Ending Inventory Value) / 2


If beginning inventory is $100,000 and ending inventory is $150,000, the average inventory value is $125,000.