ANALYSIS OF THE FACTORS DETERMINING THE IMPACT OF INVENTORY MANAGEMENT ON THE COMPANY'S FINANCIAL PERFORMANCE

Authors

  • Silvija Žvirblytė Vytautas Magnus University Agriculture Academy
  • Lina Martirosian Vytautas Magnus University Agriculture Academy

Keywords:

inventory management, financial result, inventory turnover, gross margin

Abstract

This paper presents conclusions about the impact of inventory management on the financial results of a manufacturing company. After analyzing the thoughts of different authors, it was concluded that inventory management is the right management of the supply chain and customer satisfaction, proper inventory management is when the inventory management system is chosen correctly. The dependence of the company 's historical data related to inventory management on the company' s net profitability was investigated. After analyzing the co-research, the factors analyzed by the authors were clarified. Based on the results obtained and the analysis performed by the researchers, it can be stated that the data received by the company confirmed the research already performed, as a statistically significant relationship was found between the company's profit and inventory management costs: transportation and warehousing. The study was conducted by analyzing co-scientific studies that used econometric calculations, correlation and regression analyzes.

Published

2022-06-07

Issue

Section

Accounting and finance: challenges and opportunities