Inventory Value is an accounting term used to describe the dollar value associated with merchandise a business has on hand. It’s calculated by taking the total cost of goods that are currently in stock and subtracting any applicable discounts, such as quantity discounts in a bulk order. Knowing your inventory value is an important part of effectively managing a business; it helps you better understand the financial standing of your company, as well as determining how much money needs to be invested in inventory. With effective tracking and management, you can make decisions that are beneficial for both short-term and long-term success.