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The Effect of Inventory Turnover Period on the Profitability of Listed Nigerian Conglomerate Companies

Author

Listed:
  • Sunusi Garba
  • Boudiab Mourad
  • Muhammad Adamu Chamo

Abstract

This study analyses the association concerning inventory turnover management and Nigerian conglomerate firms¡¯ profitability. The study is used a historical panel data analysis. Data were generated from the yearly accounts of listed firms from 2007 to 2016. The population of the study consists of six conglomerate firms registered on the Nigerian Stock Exchange. Feasible generalized least square (FGLS) regression was utilized as tools of analysis in the study. The findings establish that inventory turnover management affects Nigerian conglomerate companies¡¯ profitability inversely associated to the profitability of the listed conglomerate firms in Nigeria. The study suggests that there must be regular stock-taking to determine eventually, the slothful stocks to dodge over venture in such stocks (if any). Furthermore, if there is no high demand for the goods the inventory needs to be reduce that are obsolescence. Management should also implement an extraordinary inventory management measures.

Suggested Citation

  • Sunusi Garba & Boudiab Mourad & Muhammad Adamu Chamo, 2020. "The Effect of Inventory Turnover Period on the Profitability of Listed Nigerian Conglomerate Companies," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 287-292, April.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:2:p:287-292
    DOI: 10.5430/ijfr.v11n2p287
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    References listed on IDEAS

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    2. Ha Thi Thuy Van & Dang Ngoc Hung & Vu Thi Thuy Van & Ngo Thanh Xuan, 2019. "Managing Optimal Working Capital and Corporate Performance: Evidence from Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(9), pages 977-993.
    3. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LLC, vol. 7(3), pages 281-312, September.
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