The Average Inventory Formula is a way of determining the average amount of inventory that a company has in stock over a period of time. It’s an important tool for measuring stock levels, and can help companies to plan ahead and make sure they’re prepared for changes in demand. To calculate the average inventory, simply add up the amounts of goods held at the beginning and end of each period, and then divide that number by two. By taking the average of both start and end numbers, businesses can see how their levels of stock have changed over time. With the power of the Average Inventory Formula, companies can ensure their inventories remain stable and reliable – whatever the market might bring!