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Explanation: Inventories are the goods and materials a company holds at various stages of production or for sale to customers. They encompass raw materials, work-in-progress items undergoing manufacturing, and finished goods ready for distribution. Inventories are crucial for businesses across industries as they ensure a continuous supply chain, enable timely production and meet customer demands. Efficient inventory management involves balancing the need to maintain adequate stock levels to fulfil orders with minimizing excess inventory carrying costs.
Example: Maruti Suzuki has 4,283.50 crore rupees in inventories as of FY23. These are the materials and goods Maruti Suzuki needs for making cars and meeting customer orders. Monitoring inventory levels helps Maruti Suzuki manage its production and ensure it meets customer needs efficiently.
You can view the Inventories for any company on Radar under Current Assets in the Balance Sheet section.