Why Apple's "Evil" Inventory Just Spiked to the Highest Level Ever

Apple (NASDAQ: AAPL)CEO Tim Cook has always considered inventory to be " fundamentally evil." When companies overbuild inventory, it just sits around losing value -- typically 1% to 2% per week, in Cook's estimation. If it sits around too long, it will need to be written down, with the company eating a charge in the process.

On the other hand, having too little inventory can leave money on the table if the company isn't sufficiently meeting demand. Keeping lean inventory is the key to enjoying strong inventory turnover, a metric that many investors keep a close eye on. It's very much a balancing act.