• Asia-Pacific Journal of Business
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• v.13 no.1
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• pp.185-195
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• 2022

Purpose - This study attempts to analyze the determinants of inventory turnover by applying quantile regression analysis. Design/methodology/approach - By selecting the gross margin, capital intensity, and sale surprise as the determinants of inventory turnover, we investigate their effects on inventory turnover at the several quartiles (10%, 25%, 50%, 75%, 90%) of inventory turnover with quantile regression analysis. Findings - The effects of gross margin and capital intensity on inventory turnover are different for each quartile. But the effects of sale surprise on inventory turnover are not different for each quartile. Research implications or Originality -This study is the first attempt to examine the effects of inventory turnover determinants on inventory turnover by applying quantile regression analysis was not employed in the prior studies. Thus, this study is meaningful in that it shows the possible way to review inventory management strategies that can be applied differently to the firms with different inventory turnover levels.

• Journal of Korea Society of Industrial Information Systems
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• v.24 no.3
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• pp.1-21
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• 2019

The objective of this study is three-fold: to investigate the relationship between information technology (IT) investment and inventory turnover, using 98 U.S. firms spanning eleven years (from 1999 to 2009); to analyze the correlation of inventory turnover with firm and industry characteristics, where vertical integration and growth options are chosen to reflect the features of the firm's internal characteristics, and industry dynamism and industry concentration are selected to represent the industry's competitive environment; and to examine time trends in inventory turnover. The significant findings include the following: (i) both IT investment and growth options have a positive impact on inventory turnover; (ii), but vertical integration and industry concentration have a negative impact on inventory turnover; (iii) the impact of industry dynamism on inventory turnover positive; and (iv) the time trends in inventory turnover and 'adjusted inventory turnover' have been increased during the sample period from 1999 to 2009.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.23 no.58
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• pp.101-111
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• 2000

This study uses financial statements on several hundred companies listed in the Korea Stock Market to analyze trends in inventory turnover ratios and examine the effect of inventory performance on the profitability of the companies. Statistical analyses are done to determine if there have been significant changes in inventory turnover ratios and how turnover ratio pattern varied by factors such as industry, size of the firm, and the effectiveness of previous inventory management. Inventory turnover ratios decreased for four consecutive years and were found to vary by industry. Also it is proved that there was statistically significant relationship between the size of the firm and the average level of inventory as a fraction of sales. Regression analysis is done to investigate the relationship between the inventory management performance and profitability of companies and it is found that improvement in inventory level affected profitability of the companies.

• Korean Management Science Review
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• v.34 no.3
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• pp.1-14
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• 2017

This study empirically analyzes the impact of inventory management performance on the energy efficiency in Korean petrochemical companies. The concept of the distance function is used to define the energy efficiency and the estimation of the distance function is performed using the stochastic frontier analysis. The inventory turnover is selected as the variable indicating the inventory management performance of the company. The main results of this study are as follows. First, the inventory turnover has a positive impact on energy efficiency. Second, during the period over 2011~2015, while the gap in energy efficiency among the companies expanded, the average energy efficiency decreased. Third, the average energy efficiency in upstream process companies was greater than downstream process companies and the gap in energy efficiency among downstream process companies was greater than upstream process companies. Fourth, the average marginal effect of inventory turnover on energy efficiency increased gradually from 2011 to 2015. Finally, the average marginal effect of inventory turnover in downstream process companies was greater than upstream process companies, and the gap in the marginal effect of inventory turnover among downstream process companies was greater than upstream process companies. These results together imply the importance of inventory management in terms of energy efficiency.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.6
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• pp.297-302
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• 2022

The current study examines the relationship between inventory management efficiency and financial performance in Saudi Arabian companies. The study collected data from the companies listed on Tadawul (a Saudi Arabian stock exchange) during the period starting from 2016 and ending in 2020. The study uses pooled regression model by incorporating Return on Assets (ROA) and Inventory Turnover Ratio (ITR) as a performance measurement variable and inventory conversion period as an inventory management variable to report the results. The results show a positive and significant association between inventory management and firms' financial growth measured in terms of Return on Assets (ROA). Further, the study reports a positive and significant association between the inventory conversion period and inventory turnover (ITR). This shows that managing inventory efficiently shall positively impact the firm's performance. The other variables, such as debt ratio and gross profit, are positively related to ROA and negatively correlated with ITR. The firm growth is positively associated with both the dependent variables. The results suggest that the management of inventory in Saudi Arabian firms is efficient. Further, the firm size is positively associated with ROA and ITR. This shows a nexus between inventory management efficiency and firms' financial growth in Saudi Arabian companies.

• Management Science and Financial Engineering
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• v.19 no.2
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• pp.13-18
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• 2013

In this paper, we analyze the relationship between implementation of information technology and inventory turnover as a measure of operational efficiency. We build a regression model including a dummy variable that indicates whether a firm has been nominated for being good at implementing information technology. By using publicly available data, we have conducted an extensive empirical analysis and found that firms' using information technology is not likely to affect inventory turnover significantly. This result implies that we have to take careful consideration in adapting information technology.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.2
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• pp.72-81
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• 2015

This paper studied the differences of the inventories asset turnover change ratio and several characteristics variable between large and small manufacturing firm group. Large and small firm group were determined based on number of labors and asset size. Several characteristics variable of firms such as assets size, sales growth rate, return on assets, leverage ratio, credit rating and age of firm were used to find out the differences of firm group. As a result, the inventory asset turnover change ratio of large firm was 5.16% and that of the middle and small firm was 9.3%. For the large firm, sales growth rate, ROA and credit rating affect inventory assets turnover change ratio. For the middle and small sized firm, Assets size, sales growth rate and credit rating affect inventory assets turnover change ratio. Using this result, we can say that manufacturing company need to consider their firm size and their characteristics to make their own operation strategy of inventory.

• Journal of Convergence for Information Technology
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• v.11 no.9
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• pp.94-108
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• 2021

This study is to identify the internal and external factors of a company that can affect the rate of change in the inventory turnover ratio. In addition, by appropriately managing or responding to these factors, changes in the inventory turnover ratio do not occur abruptly, so that the company's business and financial performance can be improved. To confirm this, factors such as gross profit margin, cash flow volatility, advertising expenses, inflation, exchange rate rise, and leading economic index were selected, and these factors were predicted to affect the change rate of inventory turnover. Data of 85,878 companies were obtained from domestic securities listings, KOSDAQ listings, and externally audited companies, and multiple regression analysis was performed using the data. Gross profit margin and cash flow volatility have a significant positive (+) effect, advertising expenses have a negative (-) significant effect, and inflation and exchange rate rises have a negative (-) significant effect. As an influence, the leading economic index was tested to have a significant positive (+) effect. Through this, it is suggested that manufacturing companies can improve their business performance and achieve operational efficiency by well understanding and appropriately managing factors that can affect the change rate of inventory turnover.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.1
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• pp.124-130
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• 2015

In many inventory situations, items for sales are generally stocked in a multiple of variations called stockkeeping units, such as size, color, style, and so on. For better management performance on sales items, proper and effective management is necessary for the stockkeeping units. In dealing with many items and those stockkeeping units, individual inventory analysis for each stockkeeping unit needs large amount of time or cost. Also the individual approach in inventory planning increases the demand variation of an item as the result by combining of demand variations of all stockkeeping units, accordingly the inventory turnover ratio and profitability are dropped down. This research suggests an effective method of systematic control of total stockkeeping units by generating from the total item basis, and shows how to reduce the safety stock and the average inventory with attaining a planned customer fill rate of the item and each stockkeeping units.

• The Journal of Economics, Marketing and Management
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• v.3 no.4
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• pp.13-20
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• 2015

This study examined the relationship between working capital management and performance of listed companies Stock Exchange in Tehran. A total of 40 companies from the cement industry for the period 2007 to 2010 of which only 25 were selected for this study had the condition. In order to achieve the objectives, this study surveys the exploration of correlation regression analysis and used the curve obtained, the regression equation. To test the hypothesis, quantitative analysis was used as a method. The results showed a negative relationship between the variables of working capital management and the company's performance and the only variable cash conversion cycle did not show a significant relationship. There is often a negative correlation between the variables studied. This study is based on five assumptions impact of working capital management on corporate profitability is examined. Therefore, the results suggest that the variables in working capital (average collection of receivables, average inventory turnover period, the average net debt and average transaction cycle) and net operating profit is significant negative correlation Net cash conversion cycle and only illustrates the relationship is not significant. Thus, it showed that in debt collection and debt payment period, the turnover of inventory and net trade cycle to reduce the profitability of companies will increase.