Average Inventory

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Average Inventory

The value of a company's inventory over a period of time. One calculates the average inventory by adding the value of inventory at the beginning of an accounting period to the value at the end and dividing by two.
References in periodicals archive ?
She was credited with significantly reducing backorders out of her operation, while reducing average inventories by 50 percent.
Coal prices are being elevated by worldwide economic growth, below average inventories in the U.
With higher than average inventories of vehicles still on dealer lots, first-quarter production cuts by Ford and GM, higher health care costs, rising raw material costs and supplier issues, operating margin and cash flow pressures will remain high.
In addition, the company's distributors are maintaining higher than average inventories or approximately 80 days of finished goods inventory, up from 66 days at the end of last quarter.