Examination of the Relationship between Stock Management and Profitability in Businesses: An Application on Borsa Istanbul Manufacturing Companies

Ayşegül Ertuğrul and Gizem Arı

Journal of Research in Economics, Politics & Finance, 2022, vol. 7, issue 4, 839-854

Abstract: This study aims to investigate whether there is a significant relationship between inventory management and the profitability of enterprises operating in the manufacturing sector. The primary purpose of businesses is to maximize firm value. For this purpose, they want to determine the most accurate method to increase profitability by using their assets efficiently. The practical and efficient use of asset stocks with the least liquidity among current assets is thought to affect their profitability positively. The financial ratios of companies in the manufacturing sector traded on the BIST between 2019-2021 have been taken as data, and multiple regression analysis is used as the analysis method. The findings show a significant negative relationship between the stock/current assets ratio and profitability for all three years. A positive relationship is found with the 2019 net sales growth rate and a negative relationship with stock holding time. A positive and significant relationship is found between profitability and net sales rate for 2020. In summary, it can be said that businesses can increase their profitability by reducing their stocks.

Keywords: Financial Performance; Stock Management; Regression Analysis (search for similar items in EconPapers)
JEL-codes: C32 G30 G31 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://dergipark.org.tr/tr/download/article-file/2546581 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ahs:journl:v:7:y:2022:i:4:p:839-854

DOI: 10.30784/epfad.1145818

Access Statistics for this article

More articles in Journal of Research in Economics, Politics & Finance from Ersan ERSOY
Bibliographic data for series maintained by Ersan Ersoy ().