Inventory Management and Financial Performance of Listed Industrial Goods Companies in Nigeria

IF 3 Q2 BUSINESS, FINANCE

Journal of Public Budgeting, Accounting and Financial Management Pub Date : 2023-09-12 DOI:10.56201/jafm.v9.no6.2023.pg115.125

JONAH Ngbomowa Moses, COURT Eunice Ralph, AARON Clinton Chika

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Abstract

The study sought to determine the relationship between inventory management and financial performance of listed industrial goods companies in Nigeria. The predictor variable proxies used include inventory turnover and inventory conversion period while the referents for the criterion variables used for the study were net profit margin and return on assets. The study adopted the use of an ex-post facto research design. Secondary data were used in the study, which was collected from ten listed industrial goods companies in Nigeria for the 2018 to 2020 financial year. The statistical tools used for the study were descriptive statistics, regression analysis and Pearson’s product-moment correlation coefficient. The result of the finding shows that there is a significant positive relation between inventory turnover, inventory conversion period and net profit margin as well as return on assets of listed industrial goods companies in Nigeria. The study, therefore, concluded a significant relationship between inventory management and financial performance of listed industrial goods companies in Nigeria. The study recommended that the management of listed industrial goods companies should monitor inventory to ensure that optimum levels are maintained at all times to improve performance.

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尼日利亚工业品上市公司的库存管理与财务绩效

本研究旨在确定尼日利亚工业品上市公司的库存管理与财务绩效之间的关系。使用的预测变量代理包括存货周转率和存货转换率，而用于研究的标准变量的参考指标是净利润率和资产收益率。本研究采用事后研究设计。该研究使用了二手数据，这些数据是从尼日利亚2018年至2020年财政年度的10家上市工业品公司收集的。本研究使用的统计工具为描述性统计、回归分析和Pearson积差相关系数。研究结果表明，尼日利亚工业品上市公司的存货周转率、存货转换率与净利润率及资产收益率之间存在显著的正相关关系。因此，本研究得出尼日利亚工业品上市公司库存管理与财务绩效之间存在显著关系的结论。该研究建议，上市工业品公司的管理层应监控库存，以确保始终保持最佳水平，以提高绩效。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Public Budgeting, Accounting and Financial Management Social Sciences-Public Administration

CiteScore

7.80

自引率

19.40%

发文量

期刊介绍： Published four times a year, the Journal of Public Budgeting, Accounting & Financial Management (JPBAFM) is an international refereed journal which aims at advancement and dissemination of research in the field of public budgeting, accounting, auditing, financial and performance management. The journal is committed to be an outlet for rigorous conceptual and empirical works aimed at challenging and innovating the field of accounting, management and governance in entities operating in the public sphere or public-private sphere (territorial government entities, universities, schools, hospitals as well as state-owned enterprises, hybrid organizations, public and private partnerships, non-profit organizations, NGOs, etc.).