Effect Of Inventory Management On The Profitability Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigerian Plc)
ABSTRACT
The study investigated the effect of inventory management on the profitability of manufacturing companies in Nigeria specifically consumer goods sector. To achieve this objective, the study specifically investigated the effect Inventory Turnover (IT) on Return on Equity (ROE), effect of Inventory Turnover on Return on Asset (ROA), effect of Inventory Turnover on Gross Profit Margin (GPM), effect of Inventory turnover on Earnings per share (EPS) on manufacturing companies in Nigeria. The study restricted its scope to the period 2006-2017 and data used for the study was adopted from the Nestle pie. Annual Report. The simple regression method was employed as the analytical tool. Findings show that Inventory Turnover proxy for Inventory management has a positive relationship with both ROA and ROE with GPM and EPS insignificant at 5% level of significance. However, the work reveals that there is moderate positive correlation between (GPM and RO.E) and IT, a weak positive correlation between ROA and IT and a strong positive correlation between EPS and IT The study recommends the adoption of effective and efficient inventory
cost management practices such as; just-in-time, economic order· quantity and material requirement planning as well as deploying modern technology for effective inventory cost management by manufacturing companies.
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SUNDAY, C (2021). Effect Of Inventory Management On The Profitability Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigerian Plc). Repository.mouau.edu.ng: Retrieved May 03, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-inventory-management-on-the-profitability-of-manufacturing-companies-in-nigeria-a-study-of-nestle-nigerian-plc-7-2
CHLNYERE, SUNDAY. "Effect Of Inventory Management On The Profitability Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigerian Plc)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 03 Jun. 2021, https://repository.mouau.edu.ng/work/view/effect-of-inventory-management-on-the-profitability-of-manufacturing-companies-in-nigeria-a-study-of-nestle-nigerian-plc-7-2. Accessed 03 May. 2024.
CHLNYERE, SUNDAY. "Effect Of Inventory Management On The Profitability Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigerian Plc)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 03 Jun. 2021. Web. 03 May. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-inventory-management-on-the-profitability-of-manufacturing-companies-in-nigeria-a-study-of-nestle-nigerian-plc-7-2 >.
CHLNYERE, SUNDAY. "Effect Of Inventory Management On The Profitability Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigerian Plc)" Repository.mouau.edu.ng (2021). Accessed 03 May. 2024. https://repository.mouau.edu.ng/work/view/effect-of-inventory-management-on-the-profitability-of-manufacturing-companies-in-nigeria-a-study-of-nestle-nigerian-plc-7-2