Effect Of Inventory Management On The Financial Performance Of Manufacturing Companies In Nigeria:- Opara Chigozie C

ABSTRACT

 Thepurpose ofthis study is to investigate the effect ofinventory management on the financial performance of manufacturing companies in Nigeria. {This study ascertained the relationship between inventory management and the financial performance ofmanufacturing companies in Nigeria from (2014-2018). Financial performance was measured with return on asset, return on equity and gross profit margin while inventory turnover ratio was used as a parameter for measuring inventory management. Inventories are vital to the successful functioning of manufacturing and retailing organisations. This constitute a substantialproportion of the current assets of the organisation. The study review both theoretical and empirical literature on inventory management is seen as the key thatfacilitates the firms efficient operations. Inventory can be classified in three groups; raw materials which are the stock that has been purchased to be used in the process ofproduction. Work in progress (W.I.P) which representpartiallyfinishedproducts, andfinished products which represent items ofstock ready to be monetizedpandey (2008) Keywords- inventory management, working capital andfinancialperformance.