Economics at your fingertips  

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

Seyed-Mahmoud Aghazadeh

International Journal of Services, Economics and Management, 2009, vol. 1, issue 4, 414-426

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.

Keywords: inventory turnover ratio; company performance; retail industry; management quality. (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

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:

Access Statistics for this article

More articles in International Journal of Services, Economics and Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().

Page updated 2021-03-06
Handle: RePEc:ids:injsem:v:1:y:2009:i:4:p:414-426