Inventory is an asset. Figuring its value is important when you're running financial metrics, just like knowing the value of your factory or the expense of administrative overhead. The gross profit ...

Gross profit is the difference between sales and cost of goods sold, which is the difference between the cost of goods available for sale and the ending inventory. Companies typically do a physical ...

Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. From answering your legal questions to providing the right ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

FIFO is the most logical choice since companies typically use their oldest inventory first in the production of their goods. Deciding between these two inventory methods has implications for a company ...

When you own a business, you need to understand how much money you make compared to how much you spend. That means you need to grasp profit margins. But while it’s crucial to know how to calculate ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Same-store sales, margins, inventory levels — these are some of the metrics investors look at when it comes to ...