What does inventory mean?
An inventory is a complete or systematic list of goods, materials, assets, or other items belonging to a person or organization. In business contexts, it often means the stock currently held for production or sale, and it may refer both to that stock and to the process of counting and recording it. The related verb sense refers to examining or listing items in order to determine what is present. Inventory is important in retail, manufacturing, accounting, logistics, and administration because accurate records support purchasing decisions, valuation, loss prevention, and financial reporting. Outside these specialized settings, the word can refer more broadly to any collection of useful resources or possessions. Its sense is generally practical and systematic, with no strong positive or negative connotation.
nounA complete or detailed list of goods, materials, assets, or items held by a person or organization. It can also refer to the stock or supplies currently available for use or sale.
- A complete or detailed list of goods, materials, assets, or items held by a person or organization.
- The stock or supplies currently available for use, sale, or distribution.
- A systematic process of listing, counting, or checking the items held by an organization.
"The shop reviewed its inventory before the holiday season and ordered additional supplies."
"The warehouse manager conducts a physical inventory every quarter."
"The company reduced its inventory to avoid excess storage costs."
The plural is formed by changing the ending to “-ies.”
"The company reported increased inventories of spare parts."
The word “inventory” comes from the Latin invenire, meaning “to find,” reflecting its original sense of finding or discovering what one possesses.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does inventory come from?
The word entered English in the late 15th century from French inventaire, a borrowing of Medieval Latin inventarium, a list or account of goods. That Latin word was derived from invenire, meaning “to find,” which also underlies English “invent” and related words such as “invention,” “inventive,” and “inventor.” Over time, the English word developed from a recorded list of possessions into its modern senses of stock on hand and the process of taking stock.
How inventory is actually used
In business and accounting, “inventory” commonly refers to stock on hand and may include raw materials, work in progress, and finished goods. In general use, it can mean any carefully compiled list of resources or possessions.
Easily confused with inventory
An inventory records what goods or materials are held, while an invoice is a request for payment for goods or services supplied.