Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The impact of inventory turnover ratio on companies' stock performance in the retail industry

The impact of inventory turnover ratio on companies' stock performance in the retail industry In proportion to the size and relevance of inventory within the retail industry, there is an inadequate amount of research that can be found explaining the impact inventory has on the performance of the retail firm. These studies hypothesise that inventory turns are directly correlated to the performance of the company. This paper is an empirical analysis, showing the variance of annual inventory turns of a company can best explain variations in company performance in the retail industry. As shown in this model, shifts in the annual inventory ratios of companies are used as indicators to predict future stock performance. The ability of a company to control its annual inventory turns variance is a good indicator as to the quality of that management in other areas of the retail firm. Finally, the maintenance of the inventory turnover ratio is analysed regarding how it is implemented in various firms that are included in the sample of data. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Services, Economics and Management Inderscience Publishers

The impact of inventory turnover ratio on companies' stock performance in the retail industry

Loading next page...
 
/lp/inderscience-publishers/the-impact-of-inventory-turnover-ratio-on-companies-stock-performance-Fy0I997UkG
Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd. All rights reserved
ISSN
1753-0822
eISSN
1753-0830
DOI
10.1504/IJSEM.2009.024844
Publisher site
See Article on Publisher Site

Abstract

In proportion to the size and relevance of inventory within the retail industry, there is an inadequate amount of research that can be found explaining the impact inventory has on the performance of the retail firm. These studies hypothesise that inventory turns are directly correlated to the performance of the company. This paper is an empirical analysis, showing the variance of annual inventory turns of a company can best explain variations in company performance in the retail industry. As shown in this model, shifts in the annual inventory ratios of companies are used as indicators to predict future stock performance. The ability of a company to control its annual inventory turns variance is a good indicator as to the quality of that management in other areas of the retail firm. Finally, the maintenance of the inventory turnover ratio is analysed regarding how it is implemented in various firms that are included in the sample of data.

Journal

International Journal of Services, Economics and ManagementInderscience Publishers

Published: Jan 1, 2009

There are no references for this article.