Home > Glossary > H > Holding Cost (Inventory)
Illustration

Holding Cost (Inventory)

Holding cost, also known as carrying cost, represents the expenses associated with storing and maintaining inventory. It includes warehousing, insurance, depreciation, and obsolescence risks. Managing holding costs efficiently is critical for inventory optimisation, as excessive stock can tie up capital and reduce profitability.

More Items

Holding Company Discount

Holding company discount refers to the reduction in the market value of a holding company compared to the total value…

Hard Asset

A hard asset is a tangible asset with intrinsic value, such as land, buildings, or commodities. These assets are often…

Historical Return

Historical return measures the past performance of an investment over a specific period. It helps evaluate trends, compare alternatives, and…