The carrying value of inventory is the net cost associated with maintaining a company’s stock of goods. This figure is calculated by taking the cost of acquired items, adding any additional costs incurred in keeping them (such as storage fees), and subtracting the expected cost of selling them. In other words, it’s a snapshot of how much a business is investing in keeping its inventory on-hand and ready for sale. By tracking this figure, companies can maintain tighter control over their inventory levels and make more informed decisions about when to acquire new items, as well as when to destock and sell existing items.