Cited by 7Working Capital and Financial PerformanceSupply Chain and Inventory ManagementFinancial Analysis and Corporate Governance

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Impact of Inventory Management on Operating Profits: Evidence from India

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Ali, Khurshid, Showkat, Numaira, Chisti, Khalid Ashraf·2022·Journal of Economics, Management and Trade

Abstract

The study has been undertaken to ascertain whether Inventory management influences the Operating Profits of the sample companies or not. In order to achieve this objective, the researchers have taken under study pharmaceutical industry which is represented by four major companies. A reference period of eight years from 2009-2010 to 2016-2017 has been taken into consideration. The researchers employed Regression Analysis and Analysis of Varience to arrive at some dependable conclusion. The results put forth by the study strongly affirm that independent variable (Inventory Turnover Ratio) does not impact the dependable Variable (Operating Profits) statistically in a significant way, thereby, accepting the null hypothesis that there exists statistically no significant impact of inventory turnover ratio on the operating profits. The study corroborates the findings of Roumiantsev and Netessine [1], Suleman Bawa et.al. [2], and Umar [3]. These studies also established that inventory management does not influence the profitability of the firm in any significant way.

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References 8 · Cited by 7

Research works printed but not linked: 7

  1. Suleman Bawa, George Effah Asamoah and Ernest Kissi. Impact of Inventory on Firm Performance: A Study of Listed Manufacturing Firms in Ghana." International Journal of Finance and Accounting. 2018;7(4):83-96.
  2. Farooq U. Impact of inventory turnover on the profitability of non-financial sector firms in Pakistan. Journal of Finance and Accounting Research. 2019;1(1):34-51.
  3. Numaira Showkat, Dr. Khurshid Ali Ganai, Shafi SM. A cross country research review with special reference to management of inventories in textile industry. International Journal of Scientific Development and Research (IJSDR). 2020;5(5).
  4. Musau EG, Namusonge G, Makokha EN, Ngeno J. The effect of inventory management on organisational performance among textile manufacturing firms in Kenya. Int J Acad Res Bus Soc Sci. 2017;7(11). DOI: 10.6007/IJARBSS/v7-i11/3543. · DOI
  5. Mohamad SJANbS, Suraidi NN, Rahman NAA, Suhaimi RDSR. A Study on relationship between inventory management and company performance: A case study of Tetile chain store. J Adv Manag Sci. 2016;4(4):299-304. DOI: 10.12720/joams.4.4.299-304. · DOI
  6. Abubakar Y, Esenohor ET, Olowe GJ. Inventory management and financial performance of selected quoted firms in Nigeria International Journal of Research and Scientific Innovation. 2019;VI(IV).
  7. Showkat N, Ali K. Conceptual framework of Invetory management: A useful guide towards the major aspects of the subject. Int J Adv Res. 2020;8(9):395-411. DOI: 10.21474/IJAR01/11671 _________________________________________________________________________________ · DOI

Metadata

Authors
Ali, K., Showkat, N., & Chisti, K. A.
Affiliations
  • Higher Colleges of Technology (AE)
  • University of Kashmir (IN)
Venue
Journal of Economics, Management and Trade
Published
2022-07-28
Volume
28
Issue
9
Pages
22-26
ISSN
2456-9216 (ISSN-L)
OpenAlex
W4289135745
Cited by
7
References
8
Citations by year
2025: 4 · 2024: 1 · 2023: 2
FWCI
3.17
Type
journal article
Language
en
Open access
Locations
  • Journal of Economics Management and Trade (publishedVersion)
  • Journal of Economics Management and Trade (publishedVersion, cc-by)
  • HAL (submittedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Accounting › Working Capital and Financial Performance
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Supply Chain and Inventory Management
  • Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
Keywords
inventory management, operating profit, inventory turnover, pharmaceutical industry, profitability, Indian pharmaceutical companies

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CoChat. (2026). Citation check: Impact of Inventory Management on Operating Profits: Evidence from India. https://app.cochat.ai/papers/10.9734/jemt/2022/v28i930435
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Ali, K., Showkat, N., & Chisti, K. A. (2022). Impact of Inventory Management on Operating Profits: Evidence from India. Journal of Economics, Management and Trade. https://doi.org/10.9734/jemt/2022/v28i930435