Register now or log in to join your professional community.
No. Its not a good indicator. there are few other parameters also.
for ex. there is a engine model, the company has stopped its production but there are few engines in the market which are in working condition and may need some spare parts at any time. Hence you cannot dispose the spare parts unless all the engines are decommisioned.
It is not good in the simple sense that the company's capital is tied up into it thereby delaying its utilization to other productive ventures.