Impact of Inventory Management on Operating Profits: Evidence from India
Khurshid Ali, Numaira Showkat, Khalid Ashraf Chisti
Journal of Economics, Management and Trade · pp. 22–26 · Published 28 Jul 2022
10.9734/jemt/2022/v28i930435Abstract
The study has been undertaken to ascertain whether Inventory management influences the Operating Profits of the sample companies or not. In order to achieve this objective, the researchers have taken under study pharmaceutical industry which is represented by four major companies. A reference period of eight years from 2009-2010 to 2016-2017 has been taken into consideration. The researchers employed Regression Analysis and Analysis of Varience to arrive at some dependable conclusion. The results put forth by the study strongly affirm that independent variable (Inventory Turnover Ratio) does not impact the dependable Variable (Operating Profits) statistically in a significant way, thereby, accepting the null hypothesis that there exists statistically no significant impact of inventory turnover ratio on the operating profits. The study corroborates the findings of Roumiantsev and Netessine [1], Suleman Bawa et.al. [2], and Umar [3]. These studies also established that inventory management does not influence the profitability of the firm in any significant way.
References (8)
- 1 Inventory Management and Performance of SMEs in the Manufacturing Sector of Harare [DOI]
- 2 The Impact of Inventory Management Practices on Financial Performance of Sugar Manufacturing Firms in Kenya
- 3 Impact of Inventory Turnover on the Profitability of Non-Financial Sector Firms in Pakistan [DOI]
- 4 A Study on Relationship between Inventory Management and Company Performance: A Case Study of Textile Chain Store [DOI]
- 5 The Effect of Inventory Management on Organizational Performance Among Textile Manufacturing Firms in Kenya [DOI]
- 6 CONCEPTUAL FRAMEWORK OF INVETORY MANAGEMENT: A USEFUL GUIDE TOWARDS THE MAJOR ASPECTS OF THE SUBJECT [DOI]
- 7 Impact of Inventory Management on the Financial Performance of the firm [DOI]
- 8 Journal of Finance and Accounting Research [DOI]
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