Inventory Calculation Formula (ICF) is a way to measure the total value of a company’s inventory assets. It takes into account the cost of all items owned by the company, including raw materials, finished products, and inventory components such as parts, supplies, and packaging. By using ICF, businesses can estimate the value of their inventory assets, track changes in stock levels, and make more accurate decisions about how much should be ordered and how much inventory needs to be sold. Additionally, it gives companies a clearer understanding of their profitability and liquidity positions. With ICF, companies can ensure they have sufficient inventory to meet customer demand while also minimizing waste and unnecessary costs.