Average Inventory represents the mean value of inventory held over a specific period. It helps businesses monitor inventory trends, improve stock management, and calculate key financial ratios like inventory turnover.
If a company's inventory was valued at $100,000 at the beginning of the year and $140,000 at the end of the year, the average inventory would be $120,000.
MET CO is a logistics provider built for speed, precision, and growth. We specialize in cross-docking, short-term warehousing, and wholesale distribution, with a strong track record in the grocery and automotive sectors.
As our clients scale, so do we—expanding into eCommerce fulfillment, value-added services, and just-in-time delivery. Our operations are designed to handle both bulk and high-frequency inventory with minimal friction and full visibility.
Whether you need rapid turnarounds, zone-based storage, or reliable outbound execution, MET CO acts as an extension of your supply chain—lean, fast, and aligned to your goals.
Average Inventory is typically calculated by adding the beginning and ending inventory values for a period and dividing the result by two. More advanced models may use monthly averages for better accuracy.
It helps businesses track inventory efficiency, calculate turnover ratios, plan future inventory purchases, and identify storage or capital tied up in unsold goods.
Inventory turnover is calculated by dividing the cost of goods sold (COGS) by Average Inventory. A higher turnover indicates efficient inventory usage, while a lower turnover can signal overstocking or slow-moving goods.
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