Average Inventory

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 ?
LIFO income in the Q3 is expected to be in the range of $26M-$30M on accelerating movement of average inventory costs to replacement costs.
The company has an average inventory of 40-45 cars (approximately $1,000,000 in inventory is included in the price) selling 18-22 units monthly.
RELATED ARTICLE: Martignetti reduces daily average inventory, maintains in-stock performance, helps buyers make better decisions.
The EIA weekly oil inventory report also showed a decline of 5.3 million barrels to reach 396.2 million barrels, the lowest level since February-15 and 3% below the 5-yr average inventory level.
Gross margin was $154 million for the second quarter and included a negative $6 million notable item due to refinement of our weighted average inventory costing, compared to $76 million for the same period a year ago.
This is almost equivalent to ten years average inventory of 274k tons and substantially lower than average inventory stock 1.1mn tons in last 29 months.
Last year, the annual average inventory of homes on the market dropped to 1.9 months, from 2.2 months in 2016.
Increasing safety stocks results in higher average inventory levels and higher holding costs, but at the same time it decreases risk of stock- out and penalty costs.
In terms of aging of inventory, Alveo has an average inventory life of 11 months, much shorter than the ideal life of 1.5 years.
It is estimated that the average inventory per manufacturer is about one and a half months, with most of them passing on only a 2 per cent price cut to customers.A few manufacturers like Suzuki Motorcycle however have started selling motorcycles and scooters at reduced prices, passing on the entire 4 percent benefits to customers.
Last quarter, the company's production ran at over 80% capacity and average inventory days reduced to 67 days from 79 days in second quarter.
While the industry average inventory is around 65 selling days, Hyundai has an inventory of less than half that with just 27 selling days worth of vehicles.