Inventories

9 Months Ended

Sep. 30, 2025

Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. The Company evaluates and adjusts as necessary its excess and obsolescence reserve on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consist of the following:


	September 30, 2025		December 31, 2024
Raw materials	$	102,649	$	108,283
Work-in-progress	8,548		7,627
Finished goods	34,252		35,427
Total inventories, net	$	145,449	$	151,337

Inventory valued using the FIFO method was $129,856 and $138,420 at September 30, 2025 and December 31, 2024, respectively. Inventory valued using the average cost method was $15,593 and $12,917 at September 30, 2025 and December 31, 2024, respectively.

STONERIDGE INC 10-Q