oboloo Glossary

Net Realizable Value Of Inventory

oboloo Glossary

Net Realizable Value Of Inventory

Net Realizable Value Of Inventory (NRVI) is an important accounting metric that measures the expected value of inventories once they are sold. This calculation reflects both current market conditions as well as any estimated future changes in market values. By taking into account factors such as market demand, costs associated with goods, and expiration dates, NRVI helps organizations determine how much money can be gained from selling inventory. Put simply, it is a way to help maximize profits by making sure the goods you have in stock are the ones most likely to bring you a return.