What Is Inventory?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Inventory is an accounting term used to denote anything a company owns which it can turn into goods and services. For example, a car company may have car parts stored in a warehouse, and these would be classed as Inventory as they can be used in the production of cars.

Inventory is an asset and is found on the Balance Sheet under Current Assets as it is usually assumed that these parts will be turned into products and sold reasonably soon.

Related Terms

Return to Finance Dictionary

Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.