• 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.

• 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.

• 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.

• 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.

• Journal of Preventive Medicine and Public Health
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• v.19 no.2 s.20
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• pp.213-223
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• 1986

Ratio analysis allows a hospital to evaluate its own performance over time and to compare its performance with that of other hospitals. For this study, three types of ratio analysis were conducted based on some data on hospitals in Massachusetts. First, Key ratios influencing financial performance were identified using discriminant analysis. Second, the financial structures of the teaching and the non-teaching hospitals were compared using ratios and multiple comparison method. Third, the effects of the prospective reimbursement law of the state on financial performance were examined using ratios and paired t-test. The purpose of the law is to reduce hospital costs by setting the revenue ceiling prior to the effective budget year. The findings of this study were as follows: 1) When hospitals were divided into three groups, according to their operating income, only profitability ratios showed a consistent difference among the groups. 2) In the discriminant analysis, five ratios were selected: current ratio, operating margin, return on assets, fixed assets turnover, and inventory turnover. They are the key ratios to be monitored periodically for the purpose of evaluating the financial performance of hospitals. 3) When teaching hospitals were compared with non-teaching hospitals, acid ratio, days of cash on hand, and inventory turnover were statistically significant before the law went into effect, whereas only fixed assets turnover and inventory turnover were significant afterward. Contrary to previous studies, profitability ratios of teaching hospitals were higher than those of non-teaching hospitals, although the differences were not statistically significant. 4) When the ratios between the two periods (before and after the law) were compared, three profitability ratios (operating margin, return on assets, and return on equity) were significant for teaching hospitals, whereas three activity ratios (total assets turnover, fixed assets turnover, current assets turnover) were significant for non-teaching hospitals. Furthermore, while both total operating revenue and expenses were decreased, net operating income was increased, due to a greater decrease in total operating expenses. This shows that the law can indeed, simultaneously, achieve both a reduction in costs as well as an improvement in the financial situation of hospitals.

• Journal of Korean Academy of Nursing Administration
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• v.17 no.1
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• pp.115-126
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• 2011

Purpose: This study was done to identify differences in work environment, work stress, turnover intention and burnout and investigate the relationship among these variables in nurses in Korean Neonatal Intensive Care Units. Method: Participants were 242 nurses working in 13 general hospitals. Burnout was measured by the Maslach Burnout Inventory (MBI), work stress with the instrument by Gu & Kim (1994), and turnover intention with the scale by Kim & Lee (2001). Size of the NICU, nurse to patient ratio, and communication satisfaction were included in work environment. Data were analyzed using Pearson correlation coefficients and multiple regression analysis with SPSS WIN program. Results: The mean score for work stress in NICU nurses was 3.43 points, for burnout, 2.72 points, and for turnover intention, 4.64 points. Burnout and turnover intention level of participants were moderate-high. Work stress, communication dissatisfaction with physician, and clinical career accounted for 33% of variance in burnout. Significant differences were found between size of NICU and staffing related to environmental characteristics in turnover intention and burnout. Conclusions: Results indicate that effective communication with coworkers and institutional support for appropriate staffing according to number of beds will help to prevent work stress, burnout, and ultimately, nurses' resignations.

• Journal of the East Asian Society of Dietary Life
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• v.18 no.6
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• pp.1089-1098
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• 2008

The principal objective of this study was to reveal the relationship between the menu management indicators and menu performance indicators in contract-foodservice operations. Menu indicators differed according to the type of business, type of contract, type of serving, and number of service lines. In accordance with the results of our correlation analysis, we noted significant correlations between menu performance indicators and menu management indicators. The first of these was the correlation between the food cost ration and meal counts, food loss, and the use of prepared vegetables. The second of these was the correlation between food cost per meal and forecasting error, food loss, and inventory turnover. The last of these correlations was the negative correlation between menu CSI(customer satisfaction index) and the use of prepared vegetables. According to the results of our canonical correlation analysis, 2 significant functions were identified. In the first function, we noted significant correlations between meal counts, use of prepared vegetables, food loss, and food cost ratio. Additionally, we noted significant correlations between forecasting error, inventory turnover, food loss, and food cost per meal in the second function. Menu management indicators had no influence on customer satisfaction.

• Korean Management Science Review
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• v.31 no.3
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• pp.1-12
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• 2014

This study suggests the two types DEA models such as DEA CCR model and Super Efficiency model to evaluate the value of a company and to apply them for the investments. 14 kinds of real data of companies such as EV/EBITDA, EPS growth rate, PCR, PER, dividend yield, PBR, stock price/net current asset, debt ratio, current ratio, ROE, operating margin, inventory turnover, accounts receivable turnover, and sales growth ratio were used as input variables of DEA models. 12 year data from December 30, 2000 up to December 30, 2012 were collected, and the data with negative, missing and 0 values were removed reflecting the characteristics of the DEA. In order to verify the effectiveness of the models, we compared the historical variability and rate of return of both models those of the market. Study results are as follows. First, two DEA models are more stable than market in terms of rate of return because the historical variability of both models are less than that of market. Second, Super Efficiency model is more stable than CCR model. Lastly, the cumulative rate of return of Super Efficiency model (434%) is greater than that of the CCR model (420%) and that of the market (269%).

• Journal of Navigation and Port Research
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• v.39 no.3
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• pp.261-266
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• 2015

Many of previous studies suggested that working capital management is an important component of firm's financial decision and efficient working capital management affects firms' profitability and it's value. Recently, Korean shipping firms have been suffering from financial distress by recession of shipping economy. In this point of view, this study tries to investigate the relationship between working capital management and shipping firm's profitability, using panel data on 46 Korean shipping firms for the period of 2004-2013. As result of panel regression, it proved that average payment period, inventory turnover, cash conversion cycle and operating cycle are significantly associated with firms profitabilities such as profit margin ratio and operating profit ratio, and the manager of shipping firm can increase firms profitability by more efficient working capital management. There are strong positive relationships between average payment period and operating cycle and firm's profitability. These results suggest that managers can create firm's value by increasing average payment period and operating cycle. Otherwise inventory turnover and cash conversion cycle have negative relationships with firm's profitability. It means that managers can increase firm's profitability by reducing these variables.