The effect of inventory management on profitability: evidence from the Polish food industry: Case study

Gołaś, Zbigniew

doi:10.17221/370/2019-agricecon

Cited by 16 publications

(19 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Additionally, this study's findings are consistent with previous investigations' results (Orobia et al, 2020;Rahimah et al, 2018;Rahimah et al, 2018;Capkun et al, 2019) that found a positive relationship between inventory management and financial performance. Likewise, in their study, Lwiki et al (2013) revealed a significant positive relationship between the time taken to convert inventories into sales and profitability among manufacturing firms in Kenya.…”

Section: Resultssupporting

confidence: 92%

“…Additionally, the debt to equity ratio, current ratio, and firm size also significantly affected its profitability. Similarly, Capkun et al (2019), in their study, revealed a positive correlation between a company's inventory management and its financial performance. They also noted that degrees of correlation vary depending on the type of inventory and the financial performance reference.…”

Section: Introductionmentioning

confidence: 81%

See 1 more Smart Citation

Inventory Management and Financial Performance of Private Hospitals: A Positivist Evidence from Western Uganda

Cranimar¹,

John²

2021

IJBS

View full text Add to dashboard Cite

Purpose: This study set out to empirically examine the relationship between inventory management and private hospitals' financial performance in Western Uganda. Methodology: The study adopted a positivist approach and a cross-sectional research design to collect data from 32 Private hospitals in Western Uganda. The study used a closed-ended questionnaire to collect data and simple linear regression for data analysis. Findings: Results revealed inventory management as a significant predictor of private hospitals' financial performance in Western Uganda. The study recommended that private hospitals adopt robust and scientific inventory management systems and models that aim to optimise stock levels and minimise costs if they are to achieve substantial financial performance. Contribution to Practice and Policy: The study has deep-rooted the urgent need for private hospitals to adopt more stringent inventory management systems that will ensure adequate stock levels, minimise costs and enhance superior financial performance. However, the study was positivistic, thus subject to methods bias that could have affected the results' validity.

show abstract

Section: Resultssupporting

confidence: 92%

Section: Introductionmentioning

confidence: 81%

Inventory Management and Financial Performance of Private Hospitals: A Positivist Evidence from Western Uganda

Cranimar¹,

John²

2021

IJBS

View full text Add to dashboard Cite

show abstract

“…Using multidimensional regression, correlations were often explored to find connections between economic indicators. After making predictions for a single financial ratio and assuming a uniform dataset structure, the advantage of this method is an indication of the direction and strength of independent variables that affect the dependent variable [35,76]. In addition, some methods develop a linear model, such as Logit and Probit application modeling [77,78] or artificial neural networks [79,80], which improve the overall prediction accuracy.…”

Section: Discussionmentioning

confidence: 99%

Application of Canonical Variate Analysis to Compare Different Groups of Food Industry Companies in Terms of Financial Liquidity and Profitability

et al. 2021

View full text Add to dashboard Cite

Financial liquidity and profitability are two critical phenomena present in the financial economy of a company, whose relations depend on each other and may course in different directions. At the same time, they are an example of the complexity of the problem, which demands a proper approach, allowing one to reconcile two opposing objectives of any enterprise, i.e., maximizing the benefits for the owners and minimizing the risk of losing financial liquidity. Until now, the relationship between liquidity and profitability has not been examined explicitly, using multidimensional methods in particular. Nevertheless, the links between profitability and financial liquidity maintenance ensure the sustainable development of enterprises in different branches. This paper formulates two aims: scientific and practical. The scientific one concerns adopting the canonical variate analysis method to visualize the differences and relationships between food industry companies regarding financial liquidity and profitability. The practical one relates to indicating the relationship between financial liquidity and profitability in different groups of food industry companies. To study the relationships between the selected groups of enterprises and describe them, the liquidity and profitability ratios were utilized, involving canonical variate analysis based on transformation by linear combination and singular value decomposition. The analysis found that the most important feature highlighting the group of the examined entities regarding financial liquidity was the cash conversion cycle. The research results showed the existence of multidirectional relationships between liquidity and profitability. The research indicates that they depend on indicators describing financial dependencies and the industries in which they operate. This led to a much deeper and broader interpretation of the assessment of the financial situation of companies to support their sustainable development.

show abstract

“…On the other hand, overstocking in the product line can cause inventory turnover to decrease. Authors such as Nageswararao et al (2019), Thi et al (2020), Gołaś (2020), and Otekunrin et al (2021) [ 69 , 109 , 110 ] consider inventory turnover to be a measure of working capital and to have a positive relationship with profitability.…”

Section: Methodsmentioning

confidence: 99%

Profitability determinants of the natural stone industry: Evidence from Spain and Italy

Farías

Martínez²,

Martín-Cervantes³

2022

PLoS ONE

View full text Add to dashboard Cite

The natural stone sector is an important driver of the Spanish and Italian economies, which underwent internationalization after the financial crisis of 2008 as part of a survival and development strategy. This article aims to study the financial and economic profitability of this sector in the two leading European production countries, as well as its determinants. For this purpose, the economic-financial data of a sample composed of 453 companies (203 Spanish and 250 Italian) from 2015–2019 were analyzed using the multiple linear regression methodology. To address the problems of possible endogeneity and omission of variables in the model, the dependent variable was used as a regressor with one and two lags, and panel data with fixed effects were considered after performing the Hausman test. The results show significant differences between the two countries, with higher profitability in Italy. Company size, company growth (measured as the change in assets), and the variation in the country’s GDP all positively affected profitability. At the same time, the level of indebtedness showed a negative relationship. The country’s inflation rate and gender diversity in top management were shown to be non-relevant variables. The research conducted indicates that, to increase profitability, Spanish and Italian companies in the natural stone sector should undergo mergers in order to grow in size, increase efficiency in the use of assets, reduce their dependence on external financing, and promote equity capital. In addition, Italian companies should reduce the average period of payment to suppliers to lower deferral costs, and boost exports to become less dependent on the country’s domestic economy.

show abstract

The effect of inventory management on profitability: evidence from the Polish food industry: Case study

Cited by 16 publications

References 22 publications

Inventory Management and Financial Performance of Private Hospitals: A Positivist Evidence from Western Uganda

Inventory Management and Financial Performance of Private Hospitals: A Positivist Evidence from Western Uganda

Application of Canonical Variate Analysis to Compare Different Groups of Food Industry Companies in Terms of Financial Liquidity and Profitability

Profitability determinants of the natural stone industry: Evidence from Spain and Italy

Contact Info

Product

Resources

About