Valuing inventory is an important part of a business’s overall financial management process. Inventory valuation is the process of estimating the current value of the amount of goods and materials that a business owns in order to properly report their financial position. This can include raw materials, finished products, and components stored in warehouses or elsewhere. It also includes goods that are in transit, held for sale, or under repair. Inventory valuations involve assessing both the quantity and the quality of the goods being considered. In some cases, inventory may need to be adjusted for inflation and other market factors. Accurate inventory valuation allows for better decision making, as it helps companies accurately estimate their profits, assets, and costs.