Title: Inventory management and financial sustainability: insight from quoted manufacturing firms in Nigeria

Authors: Obiajulu Chibuzo Okeke; Wisdom Okere; Chinnan Francis Dafyak; Mary-Fidelis Chidoziem Abiahu

Addresses: Department of Accounting, Alex Ekwueme Federal University, Ndufu Alike, Ebonyi State, Nigeria ' Department of Accounting, Bells University, Ota, Ogun State, Nigeria ' Department of Accounting, Babcock University, Ilishan-Remo, Ogun State, Nigeria ' Directorate of Research and Professional Standards, Chartered Institute of Taxation of Nigeria, Lagos State, Nigeria

Abstract: This study analysed inventory management emphasis and its possible effect on financial sustainability of Nigerian quoted manufacturing firms. The study made use of the research design, ex-post facto. The study focused on manufacturing firms and ten were purposely sampled from the Nigerian Stock Exchange. Secondary data were obtained from the annual financial reports of the selected manufacturing firms over a ten-year period, 2008-2017. Descriptive statistics and inferential statistics (panel regression) were the analyses conducted for the study. The findings which emanated from the analysis indicated inventory turnover having a significant positive effect on financial sustainability. The conclusion of the study was that inventory management influences financial sustainability significantly. It also recommended that management of companies should develop and implement policies that will ensure good inventory management and also consider the policies of their suppliers and customers purchase pattern in order to have sustainable financial performance.

Keywords: inventory management; inventory turnover; ITO; financial sustainability; return on asset; ROA; debt to equity; earning capacity; relative solvency ratio; RSR; manufacturing companies; Nigeria.

DOI: 10.1504/IJMFA.2022.120939

International Journal of Managerial and Financial Accounting, 2022 Vol.14 No.1, pp.84 - 97

Received: 10 Jun 2021
Accepted: 25 Sep 2021

Published online: 17 Feb 2022 *

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