Plain-language questions
Ask for inventory value per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Inventory, purchasing and production
Inventory value: formula and example.
Inventory value is the total value of all products in stock on a given date. It is usually calculated at cost: quantity on hand multiplied by unit cost. It appears on the balance sheet as a current asset and determines how much working capital sits in stock.
Inventory value formula
Sum across all products of (quantity on hand × unit cost)
Worked example
On 30 June 2026 Acme Groothandel holds €980,000 of stock in its main warehouse and €270,000 in its overflow warehouse, at cost. Inventory value is €980,000 + €270,000 = €1,250,000. One product, a box of printer paper, contributes 2,000 × €12.50 = €25,000 of that.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
Inventory value on its own is neither good nor bad; what matters is how it relates to sales and demand. If value grows faster than cost of goods sold, turnover is slowing. Compare with the same date last year, with budget and by warehouse or product group.
Pitfalls with inventory value
- Mixing valuation methods, such as standard cost and weighted average cost.
- Missing or double-counting stock in transit, on consignment or sold but not yet dispatched.
- Looking only at month end when stock is much higher mid-month.
SQL & DAX
Calculating inventory value in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT sl.snapshot_date,
sl.warehouse,
SUM(sl.quantity * p.unit_cost) AS value_at_standard_cost,
SUM(sl.value) AS value_booked
FROM stock_levels sl
JOIN products p ON p.product_id = sl.product_id
WHERE sl.snapshot_date = (SELECT MAX(snapshot_date) FROM stock_levels)
GROUP BY sl.snapshot_date, sl.warehouse
ORDER BY value_booked DESC;Inventory Value = CALCULATE(SUM(Stock[Value]), LASTNONBLANK('Date'[Date], CALCULATE(SUM(Stock[Value]))))
Inventory Value vs PY % = DIVIDE([Inventory Value] - CALCULATE([Inventory Value], SAMEPERIODLASTYEAR('Date'[Date])), CALCULATE([Inventory Value], SAMEPERIODLASTYEAR('Date'[Date])))In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate inventory value?
Multiply the quantity on hand for each product by its unit cost and add everything up. Which cost you use depends on your valuation method, such as standard cost, weighted average or FIFO. Stick to one method, otherwise periods are not comparable.
Why is inventory valued at cost rather than selling price?
The stock has not been sold yet, so the margin has not been earned. Accounting standards therefore require valuation at cost, or lower if net realisable value is lower. For internal analysis you can show selling value alongside, but not instead.
What is the difference between inventory value and stock level?
Stock level is about units per product, inventory value is about money. The same number of units can rise in value when purchase prices go up. Use units for replenishment and value for working capital.
Further reading
- KPI libraryInventory and purchasing KPIs: formulasThese KPIs show how much cash is tied up in stock, how reliable suppliers are and how efficiently you produce. The data comes from your ERP, WMS and production records.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
Use AI on your own data. Securely, and without the headache.
In an online demo we show how ENABLE makes your data securely available and how you build on it: describing an app in the AI Builder, plain-language questions, dashboards and APIs. And how we set it up and manage it for you.