Financial health
Inventory
What it is
The value of goods held: raw materials, work in progress, unsold finished goods.
How to read it
Inventory swelling faster than sales suggests demand is softening, or the company misjudged it.
What it does not tell you
Carried at cost, not selling price. Obsolete stock sits on the balance sheet at purchase value long after it stopped being sellable.
Other measures — Financial health
Educational content. Polaris is not a registered investment adviser and makes no recommendation.