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Inventory Management Practices and Stewardship to Shareholders of Listed Nigerian Cement Companies

Author

Listed:
  • Lateef Kolawole Fijabi

    (Department of Accounting, Faculty of Business Studies, Christopher University, Mowe, Ogun State)

  • Rasheed Oparinde Lasisi

    (Department of Accounting, Faculty of Management Studies, Babcock University, Ilishan Remo, Ogun State)

  • Emmanuel Achori

    (Department of Accounting, Faculty of Management Studies, Babcock University, Ilishan Remo, Ogun State)

  • Janet Adejoke Adegoke

    (Department of Accounting, Faculty of Business Studies, West Midlands Open University, Ikeja, Lagos)

Abstract

This study explored the relationship between inventory management practices and the financial performance of listed cement companies in Nigeria. Data for the analysis were obtained from the published annual reports and accounts of the sampled listed Nigerian cement companies from 2015 to 2024 (10 years). Data were analyzed using descriptive and inferential statistics (multiple regression). Inventory management practices were proxied by inventory turnover ratio (ITR), inventory holding period (IHP), inventory-to-sales ratio (ISR), and inventory-to-asset ratio (IAR). Financial metrics are proxied by Return on Assets (ROA) and Return on Equity (ROE). Inventory management practices had a positive and significant effect on ROA. Inventory management practice had a positive and significant effect on ROE. The study advised industry managers to adopt Inventory management practices that align with current technology to remain profitable. Inventory is very germane in the manufacturing industry; it should be accorded critical attention for the sustainability of business.

Suggested Citation

  • Lateef Kolawole Fijabi & Rasheed Oparinde Lasisi & Emmanuel Achori & Janet Adejoke Adegoke, 2026. "Inventory Management Practices and Stewardship to Shareholders of Listed Nigerian Cement Companies," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(14), pages 736-752, January.
    • Handle: RePEc:bcp:journl:v:10:y:2026:i:14:p:736-752
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    References listed on IDEAS

    as
    1. Abdullah Bah & Ezekiel K. Duramany-Lakkoh & Foday Daboh, 2023. "An Empirical Evidence of The Impact of Inventory Management on The Profitability of Manufacturing Companies," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 13(6), pages 1-10.
    2. Donald Erlenkotter, 1989. "Note---An Early Classic Misplaced: Ford W. Harris's Economic Order Quantity Model of 1915," Management Science, INFORMS, vol. 35(7), pages 898-900, July.
    3. Adedugba Adebayo & Ogunnaike Olaleke & Kehinde Busola & Oke Gbenga, 2024. "Inventory optimality approach in replenishment and distribution a model in selected cement manufacturing firms in Lagos state," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 48(4), pages 543-557.
    4. Obiajulu Chibuzo Okeke & Wisdom Okere & Chinnan Francis Dafyak & Mary-Fidelis Chidoziem Abiahu, 2022. "Inventory management and financial sustainability: insight from quoted manufacturing firms in Nigeria," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 14(1), pages 84-97.
    5. Folajimi Festus Adegbie & Appolos Nudubisi Nwaobia & Grace Oyeyemi Ogundajo & Olusoji David Olunuga, 2020. "Inventory Control and Financial Performance of Listed Conglomerate Firms in Nigeria," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 11(2), pages 41-55, May.
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