The Value Of Inventory Formula is an equation used to calculate the total value of a company’s current inventory. This figure can be calculated by taking the cost of goods purchased, adding in any overhead costs, and then subtracting all inventory that has been sold or moved to other locations. By understanding the value of their inventory, businesses can ensure they remain profitable and organized when it comes to keeping track of their assets. In order to properly determine the Value Of Inventory Formula, businesses should consider their past purchasing records and any projected future purchases in order to come up with an accurate estimate.