TY  - BOOK
AU  - Ndifor,Roland Fon
AU  - Hashemipour,Mehrshad Radmehr
TI  - ANALYZING THE RELATIONSHIP BETWEEN  INVENTORY MANAGEMENT PRACTICES AND  FINANCIAL PERFORMANCE
PY  - 2023///
KW  - Inventory control
KW  - Dissertations, Academic
KW  - Rate of return
N1  - Thesis (MBA) - Cyprus International University. Institute of Graduate Studies and Research Business Administration Department; Includes bibliography (sheets 40-45)
N2  - ABSTRACT
Inventory management is essential to organizational profitability, as it directly 
influences the effective and efficient use of an organization's resources. This thesis 
aimed to determine the impact of inventory management on organizational 
profitability using Nigerian brewery manufacturing. To determine the impact of 
inventory management on organizational profitability, dependent variables of ROE 
and ROA were regressed against inventory turnover, inventory-holding period, and 
inventory usage with variable control leverage. The historical data of four brewery
companies in Nigeria from 2005 to 2022 were obtained through EIKON database. The 
panel data were analyzed using fixed and random effects.
The result revealed that the inventory turnover and inventory holding period of the 
firms have a negative and statistically significant effect on ROA at a significance level 
of 5% and 10% respectively. Furthermore, inventory usage showed a positive and 
statistically significant effect on ROA at a significance level of 1%. Whereas the 
controlling variable leverage had a negative and statistically insignificant effect on 
ROA. On the other hand, the inventory turnover of the firms had a negative and 
statistically significant effect on ROE at a significant level of 5%, while the inventoryholding period was found to have an insignificant effect on ROE. Furthermore, the 
firm's inventory usage period showed a positive and statistically significant effect on 
ROE at a significant level of 1%. The result for leverage showed that firms have a 
negative and statistically significant effect on ROE at a significant level of 1%.
In conclusion, inventory management has a significant impact on organizational 
profitability. Measuring independent variables such as inventory turnover, inventory 
usage, inventory holding period, and leverage is essential to evaluate the effectiveness 
of inventory management practices. Organizations that effectively manage their 
inventory will experience higher profitability, optimal resource utilization, and 
reduced costs.
Keywords: Inventory Holding Period, Inventory Turnover, Inventory Usage, 
Leverage, Return on Assets and Return on Equity
ER  -